Forex & Stocks?

I usually google my questions but i couldn’t find an answer to this one; are there traders that trade both forex and stocks? if not, Why? specially if the trader relies on Technical Analysis, then shouldn’t both be very similar?
and why can someone choose forex over stocks and vice versa?

Two reasons I prefer Forex for now is that I can trade Forex with lower margin and there are more instruments than stocks. Then there is the higher leverage offered on currency pairs. I use 1:500 sometimes using an offshore broker called Tenkofx. So I can trade much more volume than my capital would allow.

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But from what i can see is that most of the time forex is not volatile enough in-order to be scalping,“although everyone says it more volatile” i feel that forex is better for day/swing traders but not for scalpers, correct me if i’m wrong (:slight_smile:

This might help you out :blush:

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I trade FX, Indices and Commodities, I’m more cautious with the latter, and I have been burnt, but there are time if you can time your trade when they will move a lot quicker than FX, for instance I’ve been on an oil trade that has made 150 pips in 10 minutes, of course they can come back and bite you just as quick, and if I look at a particularly bad trading week you can bet its indices or commodities that have done the damage.

You don’t need as much capital to trade Forex because leverage is much, much higher. I trade both, my Forex broker gives me 50:1 leverage, my Stock broker gives me 3:1 leverage. Also, a lot of brokers don’t do both, so typically you need 2 different accounts.

I moved to stocks after trading Forex for a while and now trade both happily. Forex, in my opinion, is the most beginner friendly way to trade. It works off sound principles that once understood (school of pipsology rocks!) transfer really well into stocks. Trading stocks or indices for that matter successfully requires a lot more understanding of what a single company is doing and why and requires more time invested for a smaller gain I have found. You do the same amount of research to know that GBP is going up as you do to know that TSLA is going down for instance, however the knowledge gained from knowing what a currency is doing provides you with multiple trading opportunities as you can trade across different pairs. Where as knowing a stock direction allows you only one.

I still trade Forex from time to time but really only on big news swings, like GBPUSD during the UK election results. I find Forex is great for very quick moves timed correctly but not so good/a bit dull (for me) to trade over longer time frames when compared to stocks.

The main thing I use Fx for now is analysis of Indices and Commodities. It’s a great indicator of what is happening in other markets to help confirm what my strategy is indicating. You do need 2 accounts usually as most brokers don’t offer both, though this isn’t a big drama, I do all my analysis on trading view so swapping to a different page to manage trades isn’t too much hassle.

Just my 2 cents on it all, hope it helps in some way, ultimately I’ve found trading what interests you to be the most succesful way to go, be it Fx, Stocks, Commodities or Indices. I trade across them all at the right time. Why anyone would only choose one or the other is beyond me really, they all offer opportunities if you know what you’re looking for, so why leave money on the table?

Great question, hope this helps in some way

Stay Profitable

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They all offer opportunities if we know it. Only need technical analysis and money/risk management to rightly enter and exit or stay away-when needed. Learn some tricks and manage your risks as you could tolerate most. There are drawdowns , but gain too much if we could win.

You are right. There are just few currency pairs that are volatile and suitable for scalpers like XAUUSD

Do you think technical analysis still applies for stock trading even during this pandemic? :open_mouth:

Why not? TA remains the guiding tools to get the trend, entry & exit rightly to be safe when volatility of the market is high. During Covid-19, no exception to that principle. I do follow without deviation & I’m in profits so far. But the drawdowns are part of tradings. No one can avoid it. In stocks you may use ,multiple time frames, higher T/F for bias while shorter T/F for entry & correct Stops & exit.

When choosing to trade forex or stocks, it often comes down to knowing which suits you best.But knowing the differences and similarities between the stock and forex market also enables traders to make informed trading decisions based on factors such as market conditions, liquidity and volume. Whether you choose to trade forex or stocks depends greatly on your goals and preferred trading style.

For me, Forex has become a more reliable and simple option. In addition, it will learn a little faster.

I prefer forex. Even though Forex is volatile, and it is possible to catch lots of market moves, this market is more accessible than any other online trading market. Trading Forex online can be started with as little as 100 USD.

That’s interesting. I thought TA goes to the trash when black swan events happen! :open_mouth:

First thing about forex is that you do not need much capital for trading as they offer good leverage. And there is better volatility in forex for scalper to gain some profit at the certain time frame.

Trading stocks presents way too many puzzling options to choose from while the focus of forex trading is narrow.

I prefer forex because I think it’s less volatile compared to stocks. Maybe for more advanced traders, stocks can be a lucrative option.