This thread is focused on outlining some of the advantages and disadvantages of active trading in each market. The goal is to provide information so that traders can make a more informed decision about which market(s) may be most suited to them.
Intraday Equity Trading One primary advantage I see to this market - including pre-market and post-market, the trading day is much shorter. This translates into more off-time and sharper focus when at the desk. I understand that many involved in intraday equity trading cover an even more limited time, perhaps morning only. However, I have met active equity traders that crank schedules matching that of the currency market with pre-market and post-market preparation/research/work. It is possible to cover only a limited time in forex, however the market tempts with the possibility of moving during most any part of the 24HR - although the "Pacific" market is seldom active. A disadvantage to intraday equity trading I see is an issue that you are in getting halted --> and then re-opening much lower or higher against your position. I have also heard many stories about exchange or order problems causing outsized risk with exchanges and brokers controlling the fate/ruling of the outcome.
Surprised to see 0 comments. No crossover traders here? I would think that at some point one has considered other markets - unless everyone is an ace in their respective market and they one shot, one killed it and are doing well right of the bat.
Stocks have wider range of opportunities, less concentration of competition -- evidence for this is clear, as there are many more profitable equity traders than forex. The only reason anyone trades retail fx over stocks is that you don't need 25k to trade fx. Only advantage (but it's a big one) to forex is having a much bigger market to expand into, if you have an edge, as well as a getting a better handle on the bigger intermarket picture. If you have one, then take it to globex where you have a fair chance.
Agreed, this is a gross generalization: Compare Strategy/Tactics X for equities vs. Strategy/Tactics Y for currencies. There may be a higher probability for X to run into limitations because it can only be carried out within a certain size vs. Y because in currencies there is more size to chew on - although often/at the right times I think that the liquidity in the spot currency market serves an illusion. If it is a clear rip or tumble, people run away from eating the counter side to the market - of course, but that is every market.