Forex vs. Stocks

Discussion in 'Forex' started by missyjreng, Mar 11, 2006.

  1. Someone please share what is the advantages and disadvantages between Forex and Stocks trading ?

    also please share your experience

    Thank you ;)

  2. Considering you are from indonesia. And it's like a 12 hour difference from here in the USA.

    I guess Forex could be the way to go. I'd still rather trade Equities, because I just hate forex, and the brokers rip you off.

    I assume you'd like to trade Forex though since you posted in the Forex Trading forum?

    Need more info. I'm just biased towards Equities because I didn't have a good time with Forex, but you need to give more information about the way you want to trade, time you can trade and stuff for anyone to really be helpful, otherwise it will all just be a biased reply.

    If you were to trade Equities were you planning on trading US Equities, or something else?
  3. This is a good thread. Thank you.

    I prefer Currencies over Stocks.

    Stocks can be manipulated through earning reports and CEO posturing.

    Stocks can be more dependent on smaller things that can happen that is out of our control.

    Currencies and an entire countries infrastructuere tend to be less dependent on independent little things.

    Please excuse my simple speech and I am sure you will get many more sophisticated comments.

    Michael B.
  4. I trade equities but looking to get into forex
  5. Currencies are HEAVILY manipulated during the "slow hours". it is not true that they cannot be manipulated

    study any forex chart. look at EURUSD for example. DURING the time when it's not active trading hours (currency pairs trade 24 hrs, but depending on the pair- they hav different active hours).

    during the doldrums, to borrow a stock terminology (doldrums for stocks/indexes being from about 11:30am - 2:00pm EST), some relatively aggressive/deep pocketed banks can and will do stop runs. You see this ALL the time. like right before a move up, there will be a quick reversal spike in the opposite direction, which is used to flush out some stops prior to the opposite move.

    smart traders can take advantage of the stop runs to get IN a move, assuming they set limit orders prior to the run.

    but don't think currency markets can't be manipulated. they most certainly can.

    but manipulation is- dare i say it- a GOOD thing, since the more INEFFICIENT the market - the more profit potential for a savvy trader.

    personally, on an intraday basis, i stick primarily with index futures, not stocks. it is much harder - especially in non doldrum hours to "manipulate" an index like the DOW, since it is made up of 30 very liquid and massively capitalized big companies. these indexes move on supply/demand. with exceptionally rare exceptions, no single player, or even group of players is gonna be able to "manipulate" the DOW. that's absurd. Not to mention that when futures become even marginally out of sync with cash index, arb'ers step in and regress the futures/cash index back to the mean (the fair value range where arbitrage is not worth it).

    DOW, SP etc. are proxies for supply/demand.

    any individual stock - generally - is not. the latter can be manipulated much more easily. the problem is - are u smart enough and do you have enough of an edge to take advantage of that.

    indexes are "purer" than forex or individual stocks, in that respect. supply/demand on the DOW or SP are simply proxies for "do people want to buy stocks IN GENERAL" or sell them. not the vagaries of any particular stock /flavor of the day
  6. oneway


    All or nothing...

    Open an account with Interactive Brokers and you can trade it all...Forex, Capital and derivitives..

    Whatever floats your boat...

    If your an elliot wave trader, and swing in and out with trades ebbing and flowing a position over weeks and maybe months...

    Nothing...and I mean the currency markets...weither your trading the actual currency as forex, or the derivitives as offered by CME and others...

    Good luck...
  7. oneway


    You are absolutley right...and I see it every night when I am standing duty over a shift or "watch" change...they yank it this way and that and forex can run against you in the blink of an eye...for no (apparent) reason...

    They do it every day and all week long. Once you get used to it though, it is as you awsome opportunity to double down or enter...

    However...sometimes they get it, or wish it is the case with CHF last Thursday night...

  8. Stocks trend real nice.... I got f*cked up in futures, came back to stocks and haven't look back since...
  9. so, forex is unpredictable, but stocks is predictable ? is it right ?

    thank you

  10. No no no.... all markets are unpredictably predictable *sorry, I don't even know if that makes sense*.

    I think it is safe to say, you will get more exposure to a variety of trading styles if you trade stocks, whereas you are limiting yourself heavily if you trade currencies.

    All markets can trend, all markets can chop.

    It's kind of hard to explain why you should possibly pick one market over another.

    So I won't try and explain it anymore. I'm just telling you from personal experience. I WISH I HAD STARTED WITH STOCKS.

    But, in the end, you have to try them all to see what YOU like.

    I'd suggest stocks over futures because stocks are cheaper to trade, as in if you are destined to blow out, it is certain to take longer on an equities account. Forex, I just didn't like from the get-go, broker sucked, platform had problems. Executions are not guaranteed no matter how they try to claim it. And it is not regulated, and can be manipulated *although true with all markets*

    So just get out there and do it.

    IB will let you do it all at once. You can't go wrong there, and I'd probably take IB over a broker like FXCM if I was going to trade forex.
    #10     Mar 14, 2006