January 21, 2011
How much safer is stock trading compared to forex trading?
By Planet Wealth
im convinced that forex is pretty much gambling. its too risky. are stocks any better?
Topics: trading tips | 7 Comments »
7 Responses to “How much safer is stock trading compared to forex trading?”
Comments
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January 21st, 2011 at 5:32 am
Shares or stocks are more stable then Forex, generally speaking the price of stocks rise over time. so systems can be tailored this way,
The huge difference with forex is that currency doesnt acctually rise or fall in a stable way, so expecting overall growth isnt the way to invest in forex. But at the same time a person makes money in BOTH directions.
Without a fantastic deal of understanding in forex i would tell you to stick to stocks, but dont forget that stocks can make you lose money just as easily without education.
January 21st, 2011 at 5:32 am
If you pick reasonable stocks, you can possibly lose 30%-50% if the market goes into a dive again over a several month period.
If you trade on forex, you can lose all your money within minutes on one terrible choice..
January 21st, 2011 at 5:32 am
"Trading" is never safe; but forex is indeed just gambling. Those forex "trading system" ads are pure scams.
January 21st, 2011 at 5:32 am
Profitable thing should have risk. Not sure about stocks But need some pleasant mindset to trade or stocks. i read an article from … http://forex-tradingtutorial.blogspot.com
January 21st, 2011 at 5:32 am
hello,
here you can find a list best forex trading platforms that most traders use
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http://forexplatformslist.com
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excellent luck
fx trader(since 2000)
January 21st, 2011 at 5:32 am
Yes, history shows that stocks have alot less volatility than Forex. There are two reasons for this assumption:
Reason one: Stocks require alot less margin than trading Forex. Margin is the amount of money that you borrow from your broker for owning a certain position, either long or small the underlying asset. With Forex, the margin can be as fantastic as 1:100. With stock, the maximum amount of margin to open a new position is 1:1 or 50%. Therefore, the greater the margin, the less the price has to go to affect your total cash position since the money you borrowed never really gets affected by the price.
Reason two: Volatility. History has shown that the Forex markets tend to have much greater volatility than the stock market, in fact, much greater than any other market in the world. This volatility combined with the margin requirements could make you get rich quick as well as loose your entire investment quick. It simply depends on if various points of data are either excellent or terrible, and it doesn’t matter if it is excellent for the currency you are long or small in at all.
Personally, I haven’t had much luck in the Forex market, but have had fantastic success in the stock and options market. I have read many articles about people making money in the Forex market, but for me, I just can’t do it. I guess it really depends on the trader.
If you want to try trading with practice money, the best place to do this that I have found is thinkorswim.com.
January 21st, 2011 at 5:32 am
In general Forex is a lot more riskier than stock trading assuming you do enough research on the company stock that you plot to invest. But, stock trading can be as risky as Forex trading if you don’t do enough homework. There are also a lot of Forex scam out there as compared to stock.