Is it more difficulte to predict the stock market or the forex market,and why?
It is impossible to predict either one.
I’m a forex noob but a long time stock trader and what I’ve seen in my short demo career is that forex is somewhat easier. It seems to adhere to technical analysis better than stocks.
Mitjar,
As someone who trades forex and invests in the stock market via ETFs such as Proshares Ultrashort S&P or the long version, I keep up with the stock market as well as currencies.
I can tell you that from my experience the stock indexes (not individual stocks) behave the same way that currencies do. I apply the exact same technical analysis to S&P futures as I do the EURUSD or any other forex pair and am successful in doing so.
All of this analysis of course can be learned right here at babypips.com. Hope this helped.
Happy pipping
You have to put the same amount of time in both. More homework to do in stocks I suppose If your entering longer trades/speculation than intraday. I find non technical research of Forex a chore, but researching companies more interesting.I’m experimenting with seeing If the techniques I have picked up in FX transfer over to stocks…probably be as crap at this as FX :8:
I’ve been into stocks for a little over half-a-year. All I can say is that where I can make +4-6% in the stock market, I’m now +7% with forex in two days (I just started my demo yesterday-monday).
The potential growth that you can achieve on the forex is just amazing. Everything you’ve read about trader discipline and analyses (all types) will be of so much use.
It is not possible to predict either with 100% accuracy, contrary to what some of the EAs promise, but as others have pointed out - forex along with technical analysis is better than stocks.
I have no previous experience in the stock market and thus i have never ventured my funds into it. From my knowledge and understanding regarding the stock market i think that’s the market where we can end up in saturation. Better to stick to the forex trading business according to me.
I think most day traders end up trading on the forex.
“futures markets, with their extreme leverage, can induce short term price extremes that would not occur in cash markets. Even so, overlapping is usually confined to daily and intraday price fluctuations and even then is rare.”
says prechter and frost,
the same goes for the forex market which allows your everyday trader to control a much larger sum of money than in stock cash markets. This makes the forex market a little more volatile on the short term, but the fluctuations are basically the same.
hm…
Do you like apples or oranges?
I like a fresh fruit salad with apples and oranges
Hi mitjar, Forex trading requires that you think about elements that could affect every side of the currency pair you trade in. Such as elements that could drive the EUR and others that could affect the USD if you’re trading EUR/USD for example. You’ll need to assess how each of these factors is likely to affect the balance and exchange rate.
Trading the stock market is a little different because it’s an opportunity to take either a very macro view on things if you are going to trade indices, or go very granular and invest only in specific companies.
However, Forex and stock trading do bear similarities especially if you are going to trade intra-day or perform chart analysis. Hope this helps!
Prefer watermelons, but if my choice is limited to apples and oranges, would rather go with an amalgam of both…
Hey,
If you asking because of “what to choose?”. Choose what you interested more, anyway need to study a lot.
I though we will be having discussion about forex and stocks but it is a fruit party going on. If forex is an apple then I will definitely like that apple very much.
Forex, fruit salads, stocks, commodities, BBQ. All the same as long as you enjoy it
We are comparing two different things here; forex and stocks.
However, fundamental and technical analysis can be applied to both markets and have been proven. As long as you have a solid foundation, you are set to go. Nothing can be easier than the other without you submerging yourself into that specific market. You can listen to others, but that would be ignorant of you because it can be hard for them but easy for you or easy for them and hard for you.
Choose wisely, young Jedi.
Have a look at apple huge trends lots of potential the only problem for me is spread too high on stocks compared to forex, stocks move more per day also.
Yes thats true which is why you have to adjust your strategy and can’t use the exact same one in both.