Forex or stock?

forex Vs Stock which is better?

Depends entirely on the trader. Neither market is inherently better than the other.

I prefer Forex for all the reasons listed in the school. Like Rhody said it’s a personal preference so did you go through the school to see all the diferences? Below is a link to the comparison of the too. Which do you think is better :smiley:

Forex versus Stocks - Pre-School: Forex Basics - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

Topgun

That page needs to be updated. The uptick rule for short selling - at least in the U.S. - was removed a little while ago.

First let me point at that you are asking this on a FOREX forum. Hopefully you did not expect anything less then an bias opinion. So now let me point out some advantages of forex.

Trading on margin. You can get a whole lot more leverage with forex brokers than you can with stock brokers. You would be lucky to get 2:1 or 3:1 and furthermore you would be liable for all that leveraged money. So a forex broker will margin call you before you get into their money.

Also, trading hours are better if you are trading during the night. I guess a way this isn’t really an advantage over stocks is because you could be involved with international stock markets.

Honestly I have no experience with stock trading so I can give a decent comparison. That is besides the point because this really comes down to an individual decision. If you prefer stocks then go for it. However, if you are not really sure about which you would like to pursue then I would recommended forex because I am biased.

[I]forex Vs Stock which is better?[/I]

Cough… Cough…
Ok… Don’t get me started on this one… hehe

I’ve traded stocks, options and now forex. I prefer forex because I don’t have the patience it takes for stocks. I still invest in stock options as they’re not usually as slow as stocks. Stocks also take a larger investment than options or forex.

I think you should look at how much money you want to invest, what your personality is such as your preference for short or long term.

I’ve found the technicals for stocks/option work the same for the forex but the forex is a different market than the stock market. While most stocks have their personalities so do the currency pairs.

Good luck whichever you choose.

Forex, hands down.

Stocks don’t move fast enough!

At present I am making much more money in stocks than forex.

The Australian stockmarket does not have market makers - lovely. You are direct to the market.

The stock market goes one way… up. Stay there and you make money. Its easy. Gold is good at present. War with Iran is definitely coming.

Forex is cyclic…and I find that you make your pips (money) in bites as the cycle goes.

I find that is takes several forex cycles to equal what I make in one day on the stockmarket.

That’s just a completely false statement. The majority of stocks move much more quickly than any forex pair.

Consider EUR/USD. A 1000 pip move over a week’s time would be considered massive, but that’s less than 10%. Stocks can move that far in a day.

The speed of movement in forex has nothing to do with the instrument an everything to do with the leverage.

There are market makers. They just may not be quite so obvious as in forex where many of the brokers act in that fashion.

The stock market goes one way… up. Stay there and you make money. Its easy.

Hmmmm. Methinks I’ve heard that somewhere before. :wink:

There are market makers. They just may not be quite so obvious as in forex where many of the brokers act in that fashion.

Not sure what you mean here Rhodytrader.

The Australian market has straight thro order processing.
My buy/sell orders are placed alongside every other order in a queue. I buy/sell direct from the other orders that are placed. The price changes according to the supply/demand.

Yes, there are market makers when dealing with CFD’s.

But with Australian shares there is no creator of a price.

I understand that there are market makers on the American market. But
here, your orders are placed directly into the Stock Exchange Automated Trading System (SEATS) - ie you have a direct line to it.

I have no middleman when trading my shares - ie no market makers. I am online to the stockmarket as I write this post.

A middleman would be a broker. Brokers in stocks aren’t normally market makers. They just pass orders through to the market - and take a fee for doing so, of course.

Market makers are basically price makers and very often folks who seek to capture profits from the bid/offer spread through purchases at the bid and sales at the offer. They are still around in direct trade markets like you are dealing with, though it’s not official or as clear as when you’re talking about a pit or trading floor.

A middleman would be a broker. Brokers in stocks aren’t normally market makers. They just pass orders through to the market - and take a fee for doing so, of course.

This is exactly what is happening with my sharemarket trading.

In that sense, yes, my broker is a middleman.

I think we are in agreement then.