Hi there, I've done some stock trading and I've been pretty successful with it. I'm just wondering what the other trading possibilities are out there. How is Forex vs. stocks? Harder? Easier? The same? Opinions? Thanks!
I have not traded stocks but forex trading is easier than stock trading in my opinion because we have flexibility of timings and there are less effects of rumors in forex markets as compared to stoch market.
Hi Janice, Before working in the forex market, I traded both stocks and futures. One of the things that appealed to me most about forex is that it trades 24 hours a day. That brings with it a lot of flexibility. I think the biggest challenge for traders who are new to forex is learning how to use leverage effectively without going overboard with it. Leverage is a powerful tool that can magnify gains and losses, but some new traders only think about the gains and end up overleveraging in the hopes of making a quick profit. Our research team at DailyFX.com did a study recently on profitability by looking at the results of tens of thousands of traders. They found that traders should look to use an effective leverage of 10-to-1 or less. That means with $5000 in your account, your total trade size should not exceed $50,000. As you can see from the graph above there is a dramatic difference in profitability between traders that use more than 10-to-1 leverage and those that use less than 10-to-1 leverage. Here's a link to the complete study on trader profitability. Jason
It is obvious that a trader using high leverage cannot get a consistent profit because he will be over trading at times and it is not always good to make consistent profit.
A free demo account is a good way to get an introduction to forex trading without risking real money.
i love stocks because you have much more than price to trade off. forex is good to trade but it's no money pit.