I was thinking today et I got to wondering what form of trading is the most profitable if done right. Like, with Forex you have high leverage and the prices are moving a wee bit, whereas with stocks and whatnot, you have lower leverage, but the prices move much more. All that taken into account, which one has the potential to be the most profitable in a given amount of time?
Forex by far, but you can do the same with stocks if you trade futures.
I went to a trading convention and i asked John Carter of Mastering the Trade book that question.He trades all three Futures,Forex,stocks.The one he trades the most Futures, mostly e-mini s&p.The oppurtunity to make money quickly with a one or two point moves,trading multiple contracts i think is the reason.The absolute minimum you should be trading is with 5 thousand dollar capital.With a smaller a account you would be gambling.Forex for me then with a smaller capital while using Micro or unit accounts seemed the best alternative.When i build my account large enough i will trade both.
Anything could be profitable if you do it the correct way. However we cannot ignore the risk.
You can choose any option. But there is a little warning for you. Forex is such a market where there is no possibility to manipulate this market. On the other hand, stock is such a market where am evil company or an evil individual can manipulate the market and have ability to take all the money from the market.
Totally agree with you mate
+1 :33: Whether it’s true or not. I’m with you bud
You have to be careful about the risk…
obviously there is more opportunity with higher leverage – but you take so much more risk that way…
Forex is more profitable (and riskier), while stocks are “safer”; in FX you can lose more than your deposit, in stocks only what you have invested (if the company goes bust).
… unless you use a broker who offers negative balance protection, as many do.
… unless you use a broker who offers leverage on stock-trading, as many do.