Hi , I am new Forex student and i have a question for you guys :
In my way of learning about Forex basics , I came across “The stock market trading” , now , I’m learning about technical analysis in very short term interval ( 5 to 15 minutes candles ) , and i saw that the type of trading which i’m going for have a lot of things in common with stock market trading , which made me thinking and reconsidering if for me , as a beginner , is it the right decision to make ? Forex Vs Stocks Market trading .
-Which one is easier for beginners to make a profit from and why ? Give me your opinions ! and thanks in advance !
I think it depends on how much capital you have to trade. When you say stock trading, do you mean trading with options or long-only? FX is probably riskier since if you invest in solid companies even if you make poor choices you have an asset that will likely appreciate over time. Then again, you can do the same thing with FX swaps.
Depends a lot on how much you have and what you want out of it.
Stocks should really be relatively long term, I have held some for several years.
Forex is like shorter term. I rarely have a trade open more than a month or two.
Stocks will give me good, steady, growth and dividend income. Forex is riskier but, if done sensibly, a small amount of capital can grow quickly-last year I managed mid-60% account growth in forex.
I would never risk more than 5% of my portfolio in forex, personally
In any case, trading and investment cannot be compared. They have different characteristics, purposes, time-frames, constraints, capital requirement, risks, contributory factors, margin conditions, market access arrangements.
But the vehicles are not the key here. There is no inherent reason why forex or stocks would be better or worse than each other for any style of trading. The pros and cons come from leverage, transaction costs and tax implications.
I have (again) never read such crap in my life (not you Tom) (but this FOREX being a means of making a sustainable income and it’s easy).
To the OP:
I saw your thread and post last night and started to respond. But deleted the post. Sorry. No offense. But just search this site for “equities and commodities”. I just cannot keep repeating the same old same old all of the time.
Suffice to say: with FOREX EVERYTHING is stacked against you before you even start. If you make it: then you’re darn good is all I can say. Darn good or lucky or both.
And I will tell you something else that I’ve found interesting of late and on this very site. Years ago (mid. 2000s and onward) the mere mention of Equities and Commodities on this site was almost enough to get you kicked out (as me how i know). But nowadays: I’m seeing quite a few posts where people have given up on FOREX and moved to nice regulated markets and so far as I can tell are actually for the first time making money (so it would seem i.e. not sure how much you can read into one or two posts of course). Anyway. I believe there’s a very good reason for this. Not rocket science to figure it out either. And trading Stocks etc. is no longer this mythical magical field anymore.
Yep, forex is not going to be easy way to make money. I guess people think it will be easy because you can get astronomical leverage and the markets trade 24-5. But those things don’t make profit easier to come by, they just increase your access opportunities.
And therein lies the danger - high leverage and a 24-5 market is a more efficient way to lose money if you are starting out in trading and not yet making a profit. And that’s how most new forex traders get drawn in to forex - low capital, high leverage, no opening gaps, constant availability of live markets. Lots of reversals as forex prices are not inherently more likely to go either up or down.
Its not forex that kills them, its their terrible trading assumptions.
So maybe what I’m saying is forex is just trading. And trading badly is a great way to lose money. And because people can trade forex more, they lose it faster and bigger.
I am all for stock trading, I think it’s just new level after making some money in the forex, correct ? Somebody should really love them anyway ? I see all rich people who made their money in stocks and not in things like forex trading so answer is obvious.
I trade both stocks and forex and neither one is easier to make a profit from. A well developed forex strategy may not work with the stock market. They have different personalities.
For me Nat Gas yes it has some volatility and it is better market to see the market cycles you ca trade it on all time frames and also invest in long term for about 4 months and make a goo profit off it that being said it can also be slow from April to late August September time
I think forex is quick result in platform. Stock is quite difficult from forex. , Then it also need much investment and knowledge of financial market. Forex is easy to reach for everyone, Normal people with minimal financial knowledge can understand forex business. Forex is 24 hours market facilitate everyone to choose their best time for trading.
This is an opinionated question and we can all talk about it until Jesus comes back. I believe neither is easier but one may be easier for you. Stocks are WAY more volatile, BTW. Someone here actually said FX is more volatile… Equities can easily and quite normally move 6% in a day. A 6% move in FX is generally considered a flash crash. Most brokers for equities only provide 3:1 leverage at most. FX you get up to 50:1 in USA and I’ve seen up to 3000:1 abroad. This is what makes FX more dangerous to trade but certainly not easier or harder. The biggest FX advantage is the 24 hour market. The biggest equities advantage is you can buy/hold blue chips and you have a good chance of earning $. Eventually. A good strategy/plan is required for both. Without it, you will suck at trading. Bottom line, find what fits you best by demo trading. Of course, learn how to trade each market and create a plan before demo trading but this will show you what is easier for you. Once you traded stocks, futures, FX, options, and whatever else you wanna try, make a decision.
For a beginner, I would recommend stocks - CFDs or options depending on where you trade.
Totally disagree with previous post from Pipstop, stocks are way way way less volatile than forex, One inane comment from a politician (“any” - no need to mention names…) and your trade is out the window
Also stocks do not have to be “long term”. My trading in CFds is from average 3 days to max 2 weeks. I also trade forex but only futures…
but the real answer to your question… Neither is easy…
You’ll have a lot of heartache and many sleepless nights before you come right… just keep the faith (and your capital!!!) and you’ll get there
Trading stocks isn’t long term. Not for me, Not for a day trader. At worst I have a position open on a stock for maybe a few days. At best: no longer than a single day. Trading system being used will dictate.
Another thing that seems to be seriously misunderstood on this thread is this notion of having to “know” the stocks. Sure: if you’re THAT interested in them (as am I) then fine and go ahead and read all their news and whatever else you can find on them. But at the end of the day and as a technical (systems based) trader it’s really just about what’s on the chart. And from that perspective it’s no different from FOREX surprise surprise. Unfortunately though that’s where the similarity ends. There’s a BOATLOAD of OTHER differences which I’ve detailed too many times on this very site over the years to bother repeating here.
Equities can easily and quite normally move 6% in a day. A 6% move in FX is generally considered a flash crash. Most brokers for equities only provide 3:1 leverage at most. FX you get up to 50:1 in USA and I’ve seen up to 3000:1 abroad. This is what makes FX more dangerous to trade but certainly not easier or harder. The biggest FX advantage is the 24 hour market. The biggest equities advantage is you can buy/hold blue chips and you have a good chance of earning $. Eventually. A good strategy/plan is required for both. Without it, you will suck at trading. Bottom line, find what fits you best by demo trading. Of course, learn how to trade each market and create a plan before demo trading but this will show you what is easier for you. Once you traded stocks, futures, FX, options, and whatever else you wanna try, make a decision.