November 5, 2010
What is easier, stocks or forex currency trading?
By Planet Wealth
I am wanting to start investing some money, not to get huge profits, but more to learn a bit about investing, business etc.
I was wondering, what is "simpler" to start with; stock trading, or forex trading, and what are the pro´s and con´s of each.
Thank you!
Topics: trading tips | 9 Comments »
9 Responses to “What is easier, stocks or forex currency trading?”
Comments
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November 5th, 2010 at 10:22 am
Neither is simple. If you want to make money quick, avoid both. But, if you are willing to spend a couple of months learning the fundamentals, I reckon trading currency is a lot more fun and takes a smaller amount of capital to get started. Besides, the currency market is never sleep. While trading activities in New York may have stopped for the day, the Australian and Hong Kong markets are still widely awake and highly active. You can trade currency anytime you want, anywhere you live.
November 5th, 2010 at 10:22 am
forex is simpler but its risky compared to stock. Simple, why? because in forex, you can trade at your own comfort. It is available 24 hours a day, 5 days a week. So basically, you can trade at your convenient time. Risky, why? Currency value change so quick. you can earn money in a small time but could also lose in a blink of an eye.
November 5th, 2010 at 10:22 am
hi,
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November 5th, 2010 at 10:22 am
Simple to start forex, funds, indexes, commodities
and free real money start
simple to study make profit http://www.forexth.com
November 5th, 2010 at 10:22 am
It’s very very simple to get research on a company and its stock, simple to trade on online broker platforms, and simple to get approved for such an account. So, that’d be a wise go for learning about investing and businesses.
Forex is the largest market in the world, and you can trade 24 hours a day, which is fun; but, it’s more complicated to find a excellent forex broker, plus most of their products are highly leveraged, which means you can quickly lose your shirt without realizing it. The forex market is vast and complicated. It requires understanding of terms like "ticks" and "pips" and "yard" and "cable" and "mio" and base vs quoted currency, restricted markets, etc. Your volatility can increase on any number of variables, and the real players in this game are central governments and investment managers, who are moving hundreds of millions of dollars at a time, which can skew the value of your deal in an instant.
Play with platforms that allow you to do this stuff for free, and see what you learn without really losing real money.
November 5th, 2010 at 10:22 am
I would choose forex; BUT, not because it is simpler. I would choose forex because you could get started with a much smaller amount of money, (therefore loose a lot less).
Initially, you should be reading everything you can on trading. Trading is all the same no matter the instrument you choose. Get the basics down and start on a simulator first. At this step it does not matter if the simulator/demo account is for stocks, emini’s, or forex. You’ll get experience how your market moves and get an thought of how to input orders, size your positions, and place stop losses, etc…
Once you feel comfortable with your knowledge and the demo account, you can open up a small account to start placing small trades. Keep in mind, most new traders loose most of this money rather quickly. So the less you place in the better. With Forex you can open an account for 100 bucks or less. With stocks I believe you need atleast $2000 and that is assuming you are not going to be day trading. If you are going to be day trading the minimum for stock accounts jumps up to $25,000.
If you do well in forex trading, you can always apply your knowledge to stocks if those fit your personality better.
The main thing is to learn the fundamentals of trading first, while loosing the least amount of money. Once you know what your doing then you can ramp up your trading to higher levels.
November 5th, 2010 at 10:22 am
stocks is much slower and need more capital. forex is more risker and suitable for daytrading with less capital
November 5th, 2010 at 10:22 am
If you want to learn about investing and business, you want to start trading in the stock market. The simple reason is a lot goes into researching stocks before investing. By doing this, you’ll learn a lot about the business world. You said your purpose is to not earn huge profits which is perfect. You could buy 1 or 2 stocks of numerous companies just to learn. So the pro’s to investing in stocks is being able to research before investing, many trusted brokers, don’t need a huge investment to be able to experiment in the market. The cons are: The market is only open for limited hours, slow returns on investment, and there are thousands of stocks to pick from, making an investment choice hard.
The forex market is the largest market in the world.
Pros: More hours to trade, larger and quicker returns on investment.
Cons: Not a lot of trusted brokers, reliance on technical indicators to make trading decisions.
Usually traders use technical indicators or moving averages to make trading decisions. These indicators are not always right.
November 5th, 2010 at 10:22 am
Neither are simple and both have a lot of risk involved! There are heaps of fantastic sites out there with basic information on trading Forex and stocks.
http://www.forex-trading-on-line.net/forex-basics.html has some basic information on getting started with Forex. A simple google search should bring up a heap more info!