Neither It really all depends on a number of variables. If insomnia and stress is your thing, then I would pick Forex. -Kastro
Did you do any research on the markets, or just looking for someone to give you the answers? Why not provide some information? People getting so lazy lately, must be the time of the year. What do YOU want to trade? How much capital you starting off with? What hours do you wish to trade? Why did you eliminate futures as a possibility? Providing some information is the key to an objective answer..... c'mon.
If you know how to trade either profitably, you won't have to worry about money. Forex trends better than stocks IMO. Stocks/indicies follow technicals better on short term. Forex follows technicals better on long term. Depends what you like.
I've given this link to ech15: The benefits of trading forex. http://www.marquezcomelab.com/content/articles/art002-ForexBenefits.html.
The time zone you are in might be a factor to consider. Since this is a global forum. Electric and I work in shifts of 4 hours, scalping Forex. Many people wonder why we do not trade Futures. I really do not know. But we have something that works in the cash market. Electric has tried everything and then he finds one more thing to do. At the first hint of it, to lose its profitability, he moves on. I think sometimes he moves on too early. He gets bored. As long as it makes money, I will trade my shift, I do not get bored. I will tell you that Electric is far too creative to be a trader, and if it were not for me keeping his feet on the ground, he would have blown out years ago. I am the trader in the family and the truth comes out. Wifey.
If you're going to Trade Forex (EUR/USD, GBP/USD, USD/JPY), the most volatile times are between 6AM EST(GMT-5) and 1PM EST(GMT-5). The least volatile times are between 3PM EST (GMT-5) and 11PM (GMT-5). Take that into consideration. Pick a "window" to trade in. Trades which "cross" into other trading windows require the type of money management that is commensurate with their respective volatilies.
To trade FOREX properly IMHO you need to be fully functional by 1.45-1.50 am E.T. Just as an example, this past week the Aussie dollar was either at the very top or bottom of its daily range from that point till about 5 am ET on most days. In other words to catch a nice 50-60 pip move (80% of it's daily range at the moment) at it's peak you want to be catching it at these times. Same goes for most other currencies. By US market open the move is half over in alot of cases. At that point if you have been up early you can set your stop to B.E. if you like and relax. Thats not to say you cannot get good entries during US Session - but on the whole not as stress free as starting during the European session. Unless you trade the Canadian dollar...and even then sometimes it follows what was said above. Europe I think has the best time zone to have a "normal" existence and trade forex correctly, it is ideal for a 9-5 type job there. I'm in an Asian timezone and it's also not too bad, get up late, hit the desk in the early afternoon and be done before midnight on most days. Is it more profitable than stocks? Yes and no. With stocks (I'm no expert in this area - correct me if I'm wrong) their is so much variety (Hundreds if not thousands of different daily charts to look at to find a good opportunity) that their is always something happening whereas with FOREX you are basically stuck with a handful of currencies to choose from. From a Technical analysis standpoint, the depth and nature of the FOREX market means that intraday the charts are very crisp and clear and follow technical analysis norms very efficiently - you can sometimes nail the daily top or bottom within a few pips if you know whats going on (and a bit lucky). I don't know how this compares to stocks but as a guess I would say for a short term day trader it is better. If you make it big in FOREX their is basically no limit as to how much you can buy or sell, the liquidity is enormous.
Hi , Thank you, I have again question about trading forex: In any country, for students is it possible to trade at markets(stock, futures, options, forex etc.)? And if possible, what about law and tax from income? Thank you, A.T.
IMHO neither market is more profitable than the other, risk/reward ratio is the same in all markets. IMHO the question should not be what to trade but how to trade, and until it resolved one should not trade at all...