Home > Markets > Forex Trading > Is it easier to make consistent profits with forex than stocks?

Is it easier to make consistent profits with forex than stocks?

  1. I have a theory that it is easier to make consistent profits with forex than stocks.

    This is my reasoning.

    When the stock market enters into a bear market, it is hard to make money with stocks because most stocks will decline. Even stocks with good fundamentals will fall in a terrible bear market.

    In the forex world, there is no bear or bull market. This is because currencies trade in pairs. If this currency is bullish, then the counterpart is bearish. Unlike stocks where most will fall when the market is bearish, currencies don't fall in unison. When one fall, the other rises. Hence, it is easier for a skilled forex trader to make consistent profits than a skilled stock trader to make consistent profits.

    Do the elite traders with experience in both stocks and forex agree with my theory?
     
  2. Do you know about shorting?
     
  3. According to stats trading futures fails about the same as opening an individual restaurant (McDonalds not included, LOL).

    Don't know the stats on Forex.

    I am pretty convinced that this abysmal record is about the same.

    There are so many successful strategies out there. So why not the same % of successful traders?

    Probably emotional and capital issues.
     
  4. You obviously don't understand FX.

    You either buy or sell a pair. Entirely different dynamics.

    In stocks the equivalent is going long or short.

    Your convoluted reasoning is about as straight as spaghetti on a plate.

    Sorry for being blunt, people like you need to be protected from yourselves.

    Edit, corrected grammar or whatever it's called.
     
  5. In the forex world, there is no bear or bull market.
    What charts are you looking at? Of course there are bull & bear markets in the currencies markets, in fact recently there have been extreme bear markets - Like the cable plunging to lows not seen since the mid 80's.

    currencies don't fall in unison.
    Yes they do move in unison - The vast majority of currencies will fall when the USD rises, and rise when it declines.

    it is easier for a skilled forex trader to make consistent profits than a skilled stock trader to make consistent profits.?
    Since I trade both: that will depend on the trader. A skilled trader with very good $ mgmt has the potential to make more profits with a much smaller FX account than what you need to trade stocks. A lot of people have had horrible FX brokers, you want to make sure you are using a regulated broker with a good regulatory compliance record.

    Good luck
     
  6. Is Interactive Brokers a good forex broker?
     
  7. IB now requires $10M to trade FX. I don't recommend FX broker - so you will have to do your own research.
     
  8. May I ask which FX broker do you use for your own forex trading? Your needs are different from mine, but it will be a good start for me to do my own research. Thanks.
     
  9. This is what attracts me about forex. There will always be a bullish currency at any one time. In contrast, when the U.S stock market crashes, global stock markets outside U.S are likely to crash even harder. When U.S sneezes, other countries catch a cold. Individual stocks usually fall in unison in a crash.
     
  10. Forex is a good tool for intraday daytrader types like myself, who are doing it on a budget.

    Stocks you cant day trade without a large account really, you need $25k+ to day trade stocks, sec rules, so you need to swing trade 2-5 day holds.

    A good day trader will make more than a good swing trader, but a bad daytrader will lose more than a bad swing trader, most fall into the bad category, therefore it appears FX is worse.

    So the secret is to be a good trader of any kind :)
     

  11. That's because you don't understand shorting, and you see stocks as having inferior trading potential because your perception of trading them is centered only on "buying opportunities"; the limitation you perceive is actually self-imposed, not market-imposed as you imagine.
     
  12. Well 2K+ account with Margin to short Stocks, then only $5+ stocks.

    25K+ if you want to day trade via stocks.

    Normal poor person with normal sub 2K account is better off with Forex, why I trade forex :(
     

  13. I hear ya' ...

    (I'm no advocate for stock-tradng: I've never done a stock trade in my life. And I did start off on spot forex for exactly the same reason as you.)
     

  14. I started on stocks did well to pattern day trader rule ruined it, well short of 25k went options made/spent loads, then blew 6k over night on a gap up, spot fx since :(
     
  15. im pretty sure the answer has been said, and simply to reinforce it I would say there is nothing easy about CONSTANTLY generating profits, maybe the easiest constant are loses. lol. but seriously thats the key actually find a constant method that generates profits no matter how small it is.
     
  16. $10M - actually $10K ;)

    Then again, according to KB2731 you're screwed as a US client. Myself being from the UK.
     
  17. For U.S IB customers you have to have a $10M account to trade leveraged FX. I am able to trade with them because I use risk mgmt I don't need any leverage.
     
  18. All I can say is that I hope the UK don't follow the US in that regards.
     
  19. UK Big followers of the USA, I better get making money soon before my window closes again, Pattern Day Trader rule cost me 3years of hard work, found out about it 2 weeks before it went live, kinda hard to get motivated after that. 16years on LOL
     
  20. 16 years on, ha, good man! That's what I like to hear!
     
  21. 16 years on, still POOR, without Pattern Day Traders rule, likely quite well off like very, not good to hear at all :( very very sad sadly!! :(
     
  22. And there's me reading that like you'd found a way to still make money by the bucket full!

    Legislation is a nasty thing, we can't even compromise :(
     
  23. There was a lot of small time small account traders like myself, I had a Yahoo Group I ran, easy times, low hanging fruit, everyone was doing well that's why they stopped us :( everyone I know 25K+ uses the 4:1 margin and quickly falls sub 25K.

    Method yes, Time or the will to commit to get pulled again, tricky!!
     
  24. I trade Forex with "hedged grid" automated systems that I built. I would not be able to trade stocks with this style of strategy so Forex is by far the best market in my opinion. I can also scale up systems in Forex much easier than in stocks or futures.
     
  25. Well, maybe you make a lucky pick of a broker because most of them avoid dealing with hedgers. Also not a case for Tickmill or Hotforex, tried swap arbitrage at both which includes position hedging.
    And IMO Forex provides much more opportunities for trading rather than stocks.
     
  26. I don't trade "hedged" in same account. I trade in both directions in the same currency pairs through additional sub accounts and through using a mix of brokers.
     
  27. Nothing is easy, we need to have lots and lots of knowledge and experience and certain skills to survive in Forex trading or in any other sector.
     
  28. Ok you mean you "lock" the profit (loss) otherwise I don't see a reason to use this technique
     
  29. God no, stocks is much easier. I would very much like to see the myfxbook of the people suggesting forex.
     
  30. The Forex market is definitely more compact than stocks. I think it is easier because there is a lot less going on. If you're comparing the 28ish major currency pairs with the massive amounts of stocks, it's less intimidating.
     
  31. It is not easy to make consistent profit, you are surely going to lose today or tomorrow, Forex Trading is all about making more profits than the loss incurred, but no one can make profit with their each and every trades.
     
  32. For short-medium term trading, Forex might have a slight edge because you don't have to deal with pre-after market trading sessions and fundamentals are much more important with stocks whereas you can trade forex using only technical analysis. No volume in Forex can make things easier for some also.

    Stocks are probably easier and deliver better long-term returns if you're good with stock selection.
     
  33. Nothing is easy, not in Forex, not in Stock, you need to have lots and lots of practice to become successful in both of them.
     
  34. Right, to earn money in Trading market we have to be skilled and knowledge so that we can use our mind for trading and earn healthy income from it.
     
  35. Yeah, and to gain it, you need to have lots and lots of practice to improve our trades, else we would be just wasting time and money.
     
  36. Everything takes time in life, so as a strategy of trading. Strategy and planning for the market also take time to be perfect in a market. Nothing comes easy and free for us.
     
  37. Yeah, everything takes time and thus we need to have a good amount of practice so that we could improvise our trades.
     
  38. I will say learning and practice both can change your trading style and improve your skills for trading. If you really want to be a good trader then focus on your strategy, not ont the money only.
     
  39. This is directed at comagnom, do you mean IB requires $10 million ($10M) to trade fx , that's certainly not been my experience and I find it hard to believe , 10 thousand $ perhaps?
     
  40. Elite traders??? You're having a laugh.

    As far for EUR/USD, no thats by far more difficult to trade that the DAX for which there is a definite edge depending on time of day using a very simple approach.
     
  41. I stand corrected , seems draconian , obviously I'm not a U.S citizen.
     
  42. Yeah, Forex trading could be a good way to make money online, but knowledge and experience and skills are needed to become successful in the Forex, without it, that would be only a waste of time.
     
  43. Forex is good for those who are having minds to think and ready to learn the risky market of the world. If you are not ready to take risk of your money do not enter here.
     
  44. Yeah, to survive in the Forex Trading knowledge is the key and the minds who are having seriousness to gain it, becomes victorious in the same.
     
  45. Being serious about your work and behavior is always a good way to work. But there are still so many things that we have to consider.
     
  46. Yeah, you need to understand that if you wanna become successful, you need to have a good amount of knowledge and experience and skills and thus you need to learn a lot to become a successful trader.
     
  47. This is either very simple or very difficult question to answer.

    There are many ways to skin a cat.
    There are tons of opportunities to trade various instruments.
    We just need to find what suits us, then polish that rough worthless stone till it becomes quality diamond.

    I started investing in stocks,
    then trade stocks,
    then trade forex,
    then swing trade index futures,
    then swing trade various types of options.
    Now I only day trade various types of futures.
     
  48. Key, chief, senior personnel in corporations and governent and central banks are in the game to move stocks higher. There is clarity here. Everyone has a 401k or sumpin'
    When was the last stock bear market. Thank god we've put the possibility of global recession behind us !

    Stocks can go up when currencies go up. Stocks can go up when currencies go down.
    Stocks dont care about fundamentals . Stocks know the intermediate bull and bear trends in currencies will be resolved to favor stocks moving higher.
    This makes stocks easier to follow because stock indicies do not change direction often in significant size.

    I dont know, but I would bet that new FX traders with small accounts end up trading noise by their brokers design.
     
  49. There are so many ways to earn money online with your skills and knowledge. If you want to be the trader then you need to have some skills of trading so that you can make money here.
     
  50. Yeah, indeed there are many ways to deal in to earn money online, but for me the Forex Trading is the best way to make money online.
     
  51. There is no doubt about so many opportunities for making money online. The fact is that there are so many ways to make money. We jusst need to find the right way for us.
     

  52. Unfortunately its not theory but pointless observations with invalid conclusion.
     
  53. I prefer forex cause I have experience and know something about it. But I can't say anything about stocks cause my knowledge doesn't go very far. But I think with stocks even clearly successful strategy won't be as profitable as in forex.
     
  54. Yeah, Forex Trading would be a good amount of knowledge and experience and skills to become successful in it, thus you need to have proper amount of practice to become a successful trader.
     
  55. I don't think so, the benefit of forex trading is you can trade in both side. But it also include risk when you want to earn in both side.
    Remember, forex market was effect than stock market. So, if any news or crash, forex markets always respond immediately.
     

  56. You have to care about how to reduce risk, then you can think about profit
     
  57. Though Forex is too much Risky, but if we learn about proper risk management and money management it is too much rewarding too. You need to develop a proper trading plan to become a successful trader.
     
  58. Yes I agree with the fact. Though stock and currency both financial assets I think that working with currency is easier than stock. Because stock market is more volatile than forex market and due to uncertainty in the stock market I am a working as forex trader since 2016. And again forex market requires small investment than stock and with small money trader can earn more money if he can properly manage his currency pair trading.
     
  59. Indeed the Stock Market is quite a easy than the Forex Market. But the Forex is the hugest market, thus I am learning to gain proper knowledge to make money through the Forex Trading.
     
  60. Forex is the most volatile market there is. You either learn to handle the volatility and whipsaws or you are toast. Forex and stocks are like apples and oranges. They are not the same. Similar structure but totally different movement and volatility.
     
  61. You could never make profit consistently, you should have proper amount of knowledge and experience and skills to make it happen. You should gain more profit than the loss incurred as you could never neglect profits.
     
  62. Forex market keeps on changing. The majority of retail traders struggle to find out how to be consistently profitable in Forex.
     
  63. Yeah, Forex Market is quite fluctuating and hence we could never predict it totally. thus we need to have proper amount of practice to gain in Forex Market.
     
  64. Prediction by nature is not possible in the FX market. It's about allowing the law of large number to play out your edge in the markets.
     
  65. Prediction is never possible in the Forex Market, and if it happens, its just luck by chance, you could never predict the market situations all the time.
     
  66. Predicting anything in the forex market is actually impossible. Your best bet will always be to read the price action and act accordingly.
     
  67. Predictions are one thing - hard data is another:

    The EUR/USD has established its annual low or high in January about 80% of all years in recent decades.
     
  68. It's not a question of whether it's easier or not. It has more to do with better risk management. Trade what you can afford to lose and not the other way round. So long as your trading edge is present on the chart you should be be able to make consistent trades. No need to make the process look like rocket science.