Forex Trading Vs Stock Trading

[dbelov275 11]

please, what is your thoughts about this? which is better or profitable in your opinion, Forex trading or Stock trading. thank you in advance.

[vladtitov151 10]

it depends on individual risk tolerant. for me, I would prefer to trade stock, because it has lesser risk and it yields reasonable returns.

[dbelov275 11]

Okay, but forex is more profitable right, even though you still choose to trade stock huh?

[vladtitov151 10]

Yes. Forex trading can be very profitable as it carries a substantial amount of risk. What you should always remember is: While high-risk investments can bring you significant gains, they can also bring you tremendous losses.

[dbelov275 11]

Thank you so much. it was really helpful. I think i should think about my level of risk tolerance before making a final decision.

[dvid 0]

For me it's Forex. 24/7 for 5 week days only closed during the weekend. Forex is more volatile than stock market. 

[laureljohnson0506 0]

If you will ask for my opinion, I like FX market, the fact that it's available 24 hours a day and 5 days a week can give you an advantage over the stock market. This means you can hold a trade overnight in the Forex market. 

[davemaestro 0]

I only trade Forex and never been into stock trading, but I can say that Forex has the highes liquidity above all other markets.

[CrazyCzarina 17]

Your success depends upon the trading strategy being adopted by you. It is not only important but absolutely necessary that your trading strategy must have inbuilt strengths to make you a successful trader.

[Donald 5]

A friend of mine only trades stocks. He left forex because it was too volatile for him, and lost some money on that as well.

[CrazyCzarina 17]

Choosing Stocks or Forex is person's choice, I will never say that Stock or Forex is better than this or that. It depends on you that how you can manage it.

[divyanshisharma 2]

Whether its forex or stock trading, your strategy decides you can gain or not!

[Odiaon 0]

Forex trading is much comfortable as you can find learning sources and news sources quite easily. Moreover, it is much more diverse than the stocks as you have plenty of options to trade in with similar behavior. In stocks trading, you have research and keep an eye on every stock!  

[MaxPastukhov 1]

I invested a lot of time looking for profitable traders before getting into the niche. Something around 2-3 weeks of 12+ hours a day just to find somebody whose words I can believe enough to make any conclusions.

I must say that I found profitable and believeable traders in both markets, but stock trading had much more of them. I found just 2 full-time Forex traders whose words I can believe. They don't sell any services or products, they just live from trading of their own accounts. Both of them are tired of trading.

As for the stock market, there are a lot of people sharing their results publically. I found enough to make my own conclusions.

There are also a lot of people who finally moved from future to stocks. It's just more profitable at the end.

While Forex may seem more profitable at the very beginning becauase it's so volatile, the truth is directly opposite. Forex isn't "volatile", stocks are much more volatile by their nature. Forex gives you an illusion of volatility due to insane leverage.

Taking into account average daily range of 0.1%-0.5%, you are trading purely noise. Being a software developer, I created an internal statistical analysis system to build price movement distributions. They are so close to white noise distribution you will be surprised.

As for stocks, movements have clear signals in them. Yes, there is still a lot of noise when you are day trading, but just look at higher timeframes too see the difference.

I would personally prefer stocks, I plan to convert my first product to stock trading simulator in the future. Forex is a good way to learn initial trading experience as long as you trade penny accounts, but I would stay away from it if I decide to get back to trading again.

[nameeta26 11]

Stock trading is way more profitable than other. If your plans and research are fully effective. 

[zdo 20]

vladtitov151 nibbled at it ... but still, 14 replies into a stocks vs forex thread and not yet any mention of leverage ?  

[zdo 20]

I stand corrected.  MaxPastukhov discussed "leverage" and Percentage Change above...

Quote

 

While Forex may seem more profitable at the very beginning becauase it's so volatile, the truth is directly opposite. Forex isn't "volatile", stocks are much more volatile by their nature. Forex gives you an illusion of volatility due to insane leverage.

 

 

Thanks.

 

 

 

btw - MaxPastukhov, re fx and "Taking into account average daily range of 0.1%-0.5%, you are trading purely noise ."

I disagree.   ...  FX price movements are not 'pure noise' ... 'statistically' it may initially appear that way, but FX price movements follow very similar auction(s) patterns and cycles as  other - both high and low Percentage Change - instruments 

 

Edited September 14, 2018 by zdo
add "leverage" word to first sentence

[mukti 0]

Top 5 Differences between forex and stocks

The table below summarizes a few key differences between the forex market and the stock market:

Forex Market	Stock Market
Large volume- Around $5 Trillion per day	Less volume – Roughly $200 billion per day
Highly Liquid	Less liquid
24 Hour Markets	8 Hour Markets
Minimal or no commissions	Commissions
Narrow Focus	Wide Focus

[zuinjimi 0]

One of the biggest differences between forex and stocks is the sheer size of the forex market . Forex is estimated to trade around $5 trillion a day, with most trading concentrated on a few major pairs like the EUR/USD, USD/JPY, GBP/USD and AUD/USD. The forex market volume dwarfs the dollar volume of all the world’s stock markets combined, which average roughly $200 billion per day.

[mukti 0]

A market that trades in high volume generally has high liquidity. ... Forex major pairs typically have extremely low spreads and transactions costs when compared to stocks and this is one of the major advantages of trading the forex market versus trading the stock market.

[abhinavwealth06 0]

hello , In my point of view forex is more profitable than stock. Ya but we can say that market is all about risk. But over all forex is best to trade than stock.

[CrazyCzarina 17]

Forex Trading is always going to be much more profitable than stock trading. But you need to learn a lot before you would be entering the Forex Market.