Why Trade Forex: Forex vs. Stocks

To your trading success! Level II Trading You can see the 10 best bids and 10 best asks along with the associated volume in real time and you are allow the placement of your order at any price you wish when trading the ES. While most Forex firms offer electronic trading, some manually approve each order at a trading desk because they are market makers against your orders. If this is your goal I would look into stocks where there are many documented cases of people who have done exactly this gone from a few thousand to a few million while if your goal was to grow your capital for long term profitability then forex might be a good opportunity with much better and stable long term rewards when compared to stock trading. Many traders are attracted to the forex market because of its high liquidity, around-the-clock trading and the amount of leverage that is afforded to participants. EST Sunday, through 5 P.

The internet and electronic trading have opened the doors to active traders and investors around the world to participate in a growing variety of markets. The decision to trade stocks, forex or futures contracts is often based on .

Stocks Vs Forex : Why It is Easier to “get rich quick” With Stocks

Thank you for your comment: Forex is a much better market — in my experience — to achieve long term profitability due to the fact that it is easier to exploit inefficiencies, trading costs are lower and minimum capital requirements are lower. Thanks again for your comment!

It is better to say simply that it is a hard skill to acquire that cannot be taught without personal experience. I absolutely agree that stocks are a quicker and easier way to build wealth than Forex.

I find trends much easier to identify in stocks and they last longer than in Forex. One of my favorite quotes is: With stocks, wealth is literally being created out of nothing, and all you have to do is find the right stock at the right time. With Forex, your not winning unless someone else is loosing, not unlike Futures and Options which are also a zero sum game.

Apply those 2 filters and the winners rise right to the top! Thank you for your email: I also find it much easier to exploit mechanical inefficiencies in forex perhaps due to the lower cost or the fact that I simply now this market better and I believe that the average compounded yearly returns you can get in forex when you do have a long term edge are bigger than those you can expect from stocks when attempting to do the same thing. You are also very right about your trading rules.

As a matter of fact there are several academic studies regarding mechanical systems on stocks involving those exact same rules. In fact a study published in and revised to add data in shows that you can just buy stocks at all time highs with a 10x 20 day ATR trailing stop and achieve an average return bigger than that of the market. I completely agree with you, stock is the best way of making money beside real estate. Good article, However, with limited funds, it will be very hard to really get into some of the more interesting stocks out there.

Becuase of my own limited budget i try to find underpriced stocks, or atleast stocks under 1 USD each. All he needed was to train them for 2 weeks, and 3 years after they started, the group of people i believe it were 16 , earned a total of million Dollar. I agree with you MKattenberg. With only a small or limited amount of funds it is hard to find a good company to buy shares.

I totally agree as you said stocks trading is better idea for short term profits than forex which always keep your heart pumping for any sudden movement in the market. However, in past I made some amount from stocks trading but at that time I have no facility of live account and knowledge to predict the market trends even with simple averages line.

But, I think in case of low price stocks a martingale strategy could be easily applied to win the trade with no loss. Mail will not be published required. Mechanical Forex Trading in the FX market using mechanical trading strategies. Posted in Articles Tags: October 29, at October 29, at 1: October 29, at 2: March 9, at 7: Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees.

Spot currency trading, on the other hand, is decentralized, which means quotes can vary from different currency dealers. Competition between them is so fierce that you are almost always assured that you get the best deals. Forex traders get quicker access and cheaper costs. The stock market is very susceptible to large fund buying and selling. In spot trading, the massive size of the forex market makes the likelihood of any one fund or bank controlling a particular currency very small.

Banks, hedge funds, governments, retail currency conversion houses, and large net worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.

Have you watched TV lately? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients.

That catch will never disappear. Analysts in foreign exchange have very little effect on exchange rates; they just analyze the forex market. In the battle between forex vs. Stocks shows a strong victory by Mr. Will it go for with Mr.

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Forex Versus Indexes

Unlike the equity market, there is no restriction on short selling in the currency market. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or whichever way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. Additionally, there could be stocks, having potential, but unavailable in the trading platform. There also are fundamentals, causing a sound stock to go in opposite direction. Also, entering/leaving position when trading stocks is more expensive than that of forex. This makes currency trading easier to follow because rather than having to pick between 10, stocks to find the best value, the only thing FX traders need to do is "keep up" on the economic and political news of these eight countries.