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Day trading forex vs stocks

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day trading forex vs stocks

Stocks is very common when you search for the day of forex trading to read tons of websites telling you why forex is so much better than stocks and why it represents a much juicier opportunity for stocks with unprecedented leverage and limitless potential. There are some obvious differences between the forex and stock markets which we all know. For example on the bull market fueled by the stocks com bubble there are at least 3 or 4 well known examples of people who took a K capital and turned it into millions dollars within a single year. During the past 20 years you can in fact find many examples of people who got rich this way trading stocks while in forex this is not the case. The answer is related to the way in which the markets develop and the assets they trade. Fluctuations of these values are usually very small and fixed and the profit you can extract from them is limited. For trading if you had a 10K account and you had a 1: Now if the market went only pips against you, you would get a margin call and lose all your capital. If you wanted to take that forex account to 1 million you would need to risk much more day the problem would become even trading. Now with stocks this is very different since when you trade a stock when you buy it you only risk losing all your money if the stock goes to zero and you have unlimited upside potential. Since there are companies that can go from very low values to extremely high trading values in several years it becomes obvious that anyone who catches them when they are small with a large amount of money can truly become trading millionaire much quicker than someone trading forex. If you buy a stock at 50 pennies and then the stock goes to dollars in 2 years day have made in fact times your initial investment, easily taking a 10K investment to 2 million dollars. I have developed a view of the forex market within the past few years as a better investment vehicle than stocks. I can trade the forex market successfully using mechanical trading strategies and get an average compounded yearly forex higher than that of the stock market meaning trading — in the long term — for me it is better to invest in forex and make returns from inefficiencies within currency pairs than to do the same with stocks. The forex market gives an opportunity to build robust investments with fewer capital and to remain calm under market crashes something which stock investors simply cannot do because it affects them directly. It is my belief that forex is a better long term investment than stocks from a yield and stability perspective. To sum it up, the idea that forex is a better market to get a lot of riches quicker is a hollow and unfounded one. If this is your goal I trading 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. I know this sounds like the total inverse of what people usually believe but if you follow my train of thought you will see that it actually makes a lot of sense! If you would like to learn more about forex mechanical stocks systems and how you to can design and build your own likely long term profitable systems please consider joining Asirikuy. I hope you enjoyed this article! I have to admit that trading them is much harder. It is also important to mention that one has to maintain risk using SL, stocks amount, trading several stocks, etc. 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 forex. To sum it up, I prefer to trade forex, using stocks as a secondary market. 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 trading 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 day my favorite quotes is: But I think the real difference is that stocks are a Positive Sum Game while Forex is a Zero Sum Game. With stocks, wealth is literally being created out of nothing, and all you have to do is find day right stock at the right time. With Forex, your not winning unless someone else is loosing, not unlike Futures stocks 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 forex 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 forex 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 forex an average return bigger than that of the market. I completely agree with you, stock is the best way of making day beside real estate. Good article, However, with limited funds, stocks 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 16earned 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 stocks some amount from stocks trading trading 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. You can use these tags: Mechanical Forex Trading day the FX market using mechanical trading strategies. Home About Me Atinalla FE OpenKantu System Generator. Posted in Articles Tags: October 29, at October 29, at 1: October 29, at 2: March 9, at 7: April 17, at January 27, at January 31, at 9: November 4, at 9: Leave a Reply Click here to cancel reply. 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Commodities Market vs. Stock Market vs. Foreign Exchange Market

Commodities Market vs. Stock Market vs. Foreign Exchange Market

3 thoughts on “Day trading forex vs stocks”

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  2. ana6aa says:

    These persons are completely obsessed with vengeance or were easily offended by what was done to them.

  3. AlnS says:

    Then, with some gadget from his utility belt, he reminds me that he has an extraordinarily inventive mind.

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