Why should I choose forex over stocks?
Forex pairs generally have lower spreads than stocks, which is one of the main reasons I prefer forex. You also get benefits like higher leverage and better liquidity.
However, you don’t necessarily have to choose one or the other. There are benefits to trading stocks as well and a lot of experts say it’s better to diversify your investment portfolio.
Both these are two different markets and they are different in nature. Stocks represent one company where as the Forex pairs are in line with the overall fluctuations of their respective economies.
Forex is more volatile than stock market but trading opportunities are vast here. So you should define to yourself that which market you understand better and then choose wisely.
If you don’t have a lot of money don’t do forex. I still play with forex but if you have $500 or $1,000 you should day trade or swing trade stocks. Think of it this way you only need a stock to move 50cents in your direction to make money trading stocks. Do the math .50 x how many stocks you have.
5 trillion reasons. The liquidity is vast in forex and lots more opportunities
More opportunities if you have a 100k account. Even a 5k account makes dollars a day.
I’ve invested stocks for a while and that’s how I came to Forex.
For me, stocks are long term. Research the company, invest and leave to mature. I usually check my stock and fund portfolio once a month to make sure they are progressing as I want. Any under performing, get ditched and other stocks are invested.
With Forex, I’m admittedly still learning and have been using demo accounts. I’m of the opinion that Forex is more quick fire due to its volatility and money can be made in shorter spaces for time. I’m still developing my trading style on Forex, so don’t take my word for it.
What does this mean? A spread is the difference b/w the bid and ask- most US stocks are $0.01 wide…
Or ETFs, ETNs, Mutual Funds…
How do you overcome pattern day trading regulations w/ $1,000?
Stocks don’t have to be long-term. Not selling services, but warrior trading on youtube does it live. During his trading he sells nothing. If you want to understand a real daytrader.
You don’t, you get 3 trades a week.
You don’t have to choose between the two. You should trade both.
How many currencies can you trade?
How many stocks can you trade? For starters, think of the S&P 500 … emphasis on 500.
What happens if your 4th “trade per week” happens on a day where your stop NEEDS to get hit? Aka, you need to bail on a position that you started the day off confident in, and then just completely moved against you?
I am in for forex too.
You should choose forex because this market provides you 24 hour trading. You can watch the market anytime when you are free.
Yes you can trade those also. Its a part of the stock market.
If you live in the UK, it is tax free. (Spreadbetting, basically the same thing)
Yes, I never said that. It totally depends from person to person.