Newbie: Penny Stocks vs Forex?

Beginner Questions
1

Hi all,

I’am planning on trading but with low-capital (Approx. $600-$800$), and i have read about both of them “also on stocks” but i really couldn’t end up in a conclusion on which to start on, so can i know your opinion on which to trade as a beginner?

Many tks!

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2

I would suggest Forex rather than stocks.

4

Why is that, Luke?

5

I would say more liquidity in Forex and more visibility for aspiring trader. When you master forex, you can move to any asset.

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6

If you want to learn to trade, choose Forex. If you want to buy a bunch of penny stocks, hold on to them for days and days before they make a move in one direction or another, go with stocks. Either way, make sure you use proper money management as you can get burned with the lure of either one. Trading stocks typically takes more capital than Forex because your leverage is usually only 3:1 as opposed to 30:1 or 50:1, I believe.

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7

its a nice reply you have done , thanks for your nice reply , may be the post creator already got the answer by means of your post. thanks again.

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8

I would definitely choose Forex, without options.

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9

I prefer trading Forex rather then stocks.

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10

Stocks have many advantages, such as the ability to possibly recover your losses if something really goes wrong.

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11

How does that work?

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12

I’m wondering the same thing. Why post such a vague yet hopeful response without backing it up? By adding the word “possibly” you could apply this statement to Forex as well.

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13

Most people don’t expect to get questioned / pressed…

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14

This forum definitely needs more of that.

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15

I think society in general could use such a boost…
I’m a firm believer that there is a direct relationship between effort and outcome- would be tough to argue against that.

We’ve all been reduced to tweets, and text messages, and quick emails- where a lot of the complexities are simply lost in translation. There is a serious problem with how society attempts to educate young people-- stressing memorization and indexed testing- vs. teaching people how to think for themselves using first principles, critical thinking, etc…

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16

Whoever is reading this post, please re-read comment above. If it doesn’t make sense to you, keep re-reading it. Kudos for this comment.

17

Out of the two, i’d choose forex.

18

I would prefer forex over stocks

19

Thanks, @Old_Navy.
On the topic- I think people are drawn to FX because of the incredibly low barriers to entry.

You can literally open an account, fund it, and be trading within hours same day- no effort.
Buy if you think price is gonna go up, Sell if you think down.

21

I am a Forex trader but interested to know how do Penny stocks work?

22

Find stocks under $5
Load up on shares
Dump them when you make a profit

Simple as that amigo.