Hello everyone! I’m interested in forex trading. I’m curious, what do you all usually trade the most in the forex market? Also, I’m wondering about your thoughts on trading stocks. Is it a good idea, and how do you think it compares to forex trading? Thanks for sharing your opinions and experiences!
Forex tends to be more popular than stocks because you can open an account with very little money, and you can get leverage of up to 50:1, whereas with stocks, brokers can only offer leverage of up to 3:1 (I think it’s 2:1 in the US), which requires a much bigger account balance. I believe this is because forex is considered riskier than stocks, in general.
I’m not going to go into detail on FX vs stocks here because a simple internet search will answer those questions, such as this page: Investing in Forex vs. Stocks, plus, you asked for our thoughts.
I currently trade forex, stocks and futures, but recently I have gravitated more towards futures (micro) and mostly stocks, as I personally have found stocks more profitable with the strategy I’m using. This also seems to line up with why I can’t get more leverage on my stock account.
It is important to also consider correlation in both markets. I group FX pairs mostly based on location, whereas my stocks are grouped according to the sectors they’re in. To avoid overexposure in either market I limit the number of pairs or stocks from each group.
No matter which path you choose, it’s going to take a lot of practice to trade anything profitably. You need a good, reliable strategy for both and doing this takes time and patience, and there are no shortcuts. My advice would be to try them all in small doses and figure out which is best for you.
Hello Imogen,
I trade currency pairs and do not trade stocks .Stock trading often involves more long-term investing, while forex is often seen as a short-term trading market.
Stock markets have specific trading hours based on the exchange’s location. I mostly trade currency pairs and I want start trading stocks.
I also can see most traders select currency pairs, and there’s a ton of information on tradable assets here, but I can see many traders are eager to trade stocks now, and I want to share their experiences and let us know how profitable they are. I’d like to hear about them.
Yes, I confirm this opinion and it depends on exchange and it’s area . You know I m searching on different aspects of trading and try to find answers for all questions.
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