is forex trading better than stock trading ? which one is more convinient to do ? pro and cons ?

Answer 1

People warn you not to touch anything if you aren't an expert - but of course you need to start somewhere - can't become an expoert without getting your hands dirty.

Neither is better.

The question you should be asking is what is the best for you financial situation.

Can you afford to lose money?

Are you an investor? Are you in it for the short or long term?

Can you handle a lot of stress?

What time zone are you? where are you? which market is the best accessible?

How much money you have to play with?

From this you can discern what is best for you.

Answer 2

With forex, you can choose easily which currencies you can trade which are recommended already, such as the 'major currencies'. With stock trading, you have to choose from a list of possibly hundreds of companies depending on your country. Also, experience is the key in forex trading. The following sites have been a big help to me in explaining which of these are the best and also why.

Answer 3

Forex trading has a larger participation than stocks and so manipulation is not possible. However, returns on forex trading is much less as fluctuation is a lot less.

Answer 4

Ok I have traded both forex & stocks..

And am presently a proprietary trader in stocks...

I would advice you for stock trading.. not forex..

reason:
1. there is always an exit point in stock trading..
2. reaons behind buying.... (u jus dont buy a stock because it looks good on chart)..
3. many fundamental, inside & technical news..
4. other hidden techniques too..

let me know.. if I could help.

Girish
[e-mail]

learn day trading free online,learn trading,learn day trade stocks
http://us.geocities.com/kgirishraman/index.html

Answer 5

Forex trading is far more risky than stock trading. Don't do that if you're not an expert.

Answer 6

Heed this advice fella as i know what i'm talking about.

You will lose your shirt if you try forex trading (what do you know about it anyway as even big bollox traders in banks f**k up regularly). Even shares are risky but you have more chance. Don't day trade as you'll only make your broker rich.

Good luck

Answer 7

Yes it is.
In the term of convienient to do at your own time which might be different from people to people as the market round the clock 24 hours.
It also can accomodate any of your trading style and as the volitilite always there then its easy to execute your trade.
The help also around every corner alot of free website, forum and books.

Answer 8

lots of things has tried to take the place of stock trading.. look at nasdex that is what they are trying to do... stock trading has proving record. lord knows it has made it thourgh lots of down times and it is still here. in my opinion it will always be here.

Answer 9

Forex as its tangible , stocks are hypotheses and certificates which anything can happen.

Answer 10

5 Reasons to Trade Forex Instead of Stocks

While Forex trading is becoming more popular in the United States, the vast majority of investors still do not understand the massive advantages offered in the foreign currency market when compared to equities or fixed income trading. When you fully grasp the following concepts, you'll understand why you might want to reconsider your current investment strategies.

1. Currency prices are not heavily influenced by institutional investors. In stock trading, there is a limited amount of volume on a daily basis. Each stock has a specific number of shares on the open market and trade prices are governed by the number of people attempting to buy or sell shares at a specific point in time. This makes the market vulnerable to price swings when a large investor is attempting to buy up or unload large amounts of shares. For example, if some pension fund owns 10% of a company and suddenly decides to liquidate their position, the market is now flooded with sell orders. Since the amount of shares attempting to be sold will outnumber the amount of buy orders, the price of the stock will start to drop as the number of buyers days up. This creates losses for the remaining shareholders. On the other hand, the forex market is so massive and has so many investors that no single investor can possibly have a major impact on pricing. There are too many units of Euros, Dollars, Yen, etc for any single institution to hold even close to a controlling interest in any currency.

2. Margin requirements are significantly lower in forex trading than equity trading. While the exact amount of margin allowed is determined by each broker, the restrictions are usually much less stringent when trading forex. Margin allows the investor to "play with house money." In essence, you're borrowing money from the broker to invest in your own account. While this can be risky, it can also be insanely profitable. For example, let's say you have $10,000 of your own money to invest. If you open up a margin account at an equity broker, you can usually margin up to 50% of the value of stock. So if you buy $10,000 in Microsoft stock, you can borrow another $5,000 to own a total of $15,000 in value. With your forex account, the margin requirement is often as low as 1%. Which means that if you buy $10,000 in Euros, you can use your broker's money to buy another $1,000,000. So you now own over $1 million in Euros. Now lets say that the value of each investment increases 10%. Your $15,000 in Microsoft stock is now worth $16,500. You sell it, pay back the $5,000 you borrowed, and you pocket $1,500 in profit (minus any fees or interest). Your return on investment is 15%. If your Euros went up 10%, your $1 million is now worth $1.1 million. After selling and repaying your broker, you profit $100,000 before any interest. That's a return on investment of over 1,000%. Of course, you need to be extra careful when trading on margin. Imagine if the transaction went the other way. You'd be in a much bigger hole in the forex scenario. But the potential for enormous gain is there and is one of the major reasons why forex trading is so attractive to serious investors.

3. Forex trading is open 24 hours a day. Unlike the U.S. stock markets, you can trade forex any time of day from Monday through Friday. If a major news story breaks when you're holding stock, and it's after hours, you're stuck holding onto your position until the market opens the next day. By the time this happens, everyone else knows the news and there's thousands of buy/sell orders waiting when the opening bell rings. This will dramatically influence your trade price and negate any advantage you might have had by being one of the first to react. Keep in mind that many corporations withhold major news such as earnings reports and personnel moves until after the market closes. They do this to minimize emotional trading, which is smart for them to do but also hurts savvy investors. Since Forex trading is open 24 hours, you can place your trade order whenever major events occur.

4. The foreign exchange market is more liquid than the equity market. Forex is the largest market in the world. Every day, an average of $1.4 trillion dollars is traded, and the amount of securities (foreign currencies) is minuscule when compared to the number of companies traded in the equities market. This means that there are always buyers to be matched with sellers, which means that you'll have a much better chance to get a fair and accurate price on your trade than if you were trading a low volume stock where the bid and ask spreads can be very large.

5. Forex trading offers the advantage of limited risk. This is one of the large advantages over the futures market. When you buy a futures contract, you are obligated to buy or sell a specific amount of a specific commodity at a specific time for a specific price. Which means that if disaster hits, you're out of luck. For example, lets say you buy a futures contract to sell corn. If news breaks that reports an outbreak of deaths caused by a pesticide used in corn crops, the price on your contracts will drop through the floor, limits will drop, and you could be stuck in your position and end up taking massive losses. This would not happen in the forex market since you can leave your position at any time.