Forex vs Stocks: Which Should You Trade?

Forex and stocks are two of the most popular global markets. Before you start trading either, it’s vital to know which is best suited for your trading strategy and risk appetite. Look at our comparison and learn the differences.

The largest difference between forex and the stock market is, of course, what you are trading. Forex, or foreign exchange, is a marketplace for the buying and selling of currencies, while the stock market deals in shares – the units of ownership in a company. Primarily, your decision about whether to trade currencies or stocks should be based on which asset you are interested in trading, but there are some other factors you need to consider.

Market trading hours

The opening hours of a market can have a significant influence over your trading, impacting the time you will need to spend monitoring the markets.

As forex is a completely global market, you can trade 24 hours a day, five days a week. This provides you with ample opportunities for trading, but also creates the risk of the market moving while you aren’t around to monitor it. If you decide to trade forex, it is important to create a risk management strategy with appropriate stops and limits to protect your trades from unnecessary losses.

The best time of day to trade forex is when the market is the most active, which is usually when two sessions overlap, as there will be a higher number of buyers and sellers. For example, if you were interested in GBP/USD, London and New York trading hours overlap between 12pm to 4pm (London time). The increased liquidity will speed up transactions and even lower the cost of spreads.

Share trading is slightly different, as it is often limited to the opening hours of whichever exchange the shares are listed on. Increasingly extended hours are being offered to traders, which means you can act quickly on breaking news, even when the market is closed.

Find out more about trading stocks

Market influences

Another factor to consider before trading forex or shares is what moves market prices. Primarily, both markets are influenced by supply and demand, but there are a host of other factors that can move prices.

When share trading, you will need to focus on a few factors that directly impact your chosen company – including the company’s debt levels, cash flows and earnings – as well as economic data, news reports and sector health.

But with forex, the focus tends to be far wider, as a more complex range of factors can impact market pricing. You generally need to take the macroeconomics of the country into consideration – for example, unemployment, inflation and gross domestic product (GDP), as well as news and political events. And because you are buying one currency while selling another, you need to be aware of the performance of not just one economy, but two.

Why trade forex?

Liquidity

Liquidity is the ease at which an asset can be bought or sold in a market. It is an important consideration because the higher the volume of traders, the more money there is flowing through the market at any time – making it easier for you to find someone to take the other side of your position.

Forex is the largest and most popular financial market in the world, which means it is extremely liquid and frequently sees a daily turnover of trillions of dollars.

Market liquidity can fluctuate throughout the day as different sessions open and close around the world, but it also varies greatly depending on which FX pair you choose to trade. Just eight currency pairs account for the majority of trading volume – for example, the dollar is involved in almost 75% of all forex trades according to the Bank of International Settlements (2016).

The stock market sees comparatively fewer trades per day, but shares are still easy to access and trade. Large, popular stocks – such as Apple, Microsoft or Facebook – are the most liquid as there are usually willing buyers and sellers, but once you move away from blue chips there is often significantly less liquidity.

Volatility

Volatility is a measure of how likely it is that a market’s price will make major, unforeseen price fluctuations. A market with high volatility will see its prices change quickly, whereas markets with low volatility tend to have more gradual price changes.

The ease at which forex can be traded makes it extremely volatile. Though the market will usually trade within a small range, the vast number of trades taking place on the forex market can cause prices to change extremely quickly. When trading forex it is important to keep up to date with political, economic and social events, as the market is prone to sudden and drastic movements in response to these announcements.

The stock market tends to have more stable price patterns that you can track over time. But, like forex, it can see periods of volatility and is especially sensitive to domestic politics. For example, the Dow Jones fell sharply in March 2018 as American companies suffered from US President Donald Trump’s trade tensions with China.

Trading volatility can potentially provide a lot of opportunities for traders to profit, but it also comes with increased risk, making it important to take steps to prevent unnecessary loss.

Leverage

Trading on leverage enables you to gain exposure to markets with just a fraction of the capital normally required. Leveraged products, such as CFDs, can be used to trade on margin across a range of markets.

Though it can be an advantage of both share trading and forex trading alike, it is more commonly cited as a feature of currency trading. Forex trades usually have a much larger leverage ratio, in some countries as much as 200:1. But leverage is a double-edged sword: though it can magnify returns, it can also magnify losses.

Whichever market you choose, it is important to be aware of the size of your exposure, and understand the risks involved.

Read more about the impact of leverage on your trading

Going long or short

When deciding between forex and the stock market, it is important to identify all the opportunities available to you – notably, can you short sell? The ability to short a market opens you up to a whole new dimension of market movements, enabling you to speculate on both rising and falling markets.

As forex trading involves buying one currency and selling another, traders have always been able to access falling markets.

When investing in shares, you could traditionally only take a long position, as you’d be looking to profit from any future increase in the value of a company’s stock. But thanks to derivative products, such as CFDs, you can go long and short on company shares – giving you equal access to trading opportunities whatever the future direction of the market.

Find out how to short sell

Should you trade forex or stocks?

When it comes to deciding whether you should trade forex or stocks, there is no definitive answer because there are benefits and drawbacks to each market. Ultimately, your decision will come down to your personal preferences and attitude toward risk.

When making your decision, you need take into consideration your trading style and financial goals. If you are interested in a fast-paced environment, forex provides ample opportunities for short-term traders – such as day traders, scalp traders or swing traders. If you’re looking to take advantage of short to mid-term trends, or less volatility, the stock market could be for you.

By: Becca Cattlin | Financial writer, London

Source: Forex vs Stocks: Which Should You Trade? | IG EN

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#forex​ #stocks​ #trading​ A1 Trading Forex Discord Community – Trade alerts, webinars, chatrooms: Use code YTVIP for a $5 off – https://a1trading.com/vip/ FREE forex analysis telegram channel: https://t.me/A1TradingFXAnalysis Market analysis, ideas, and coverage: https://a1trading.com/ A1 Trading email newsletter (market analysis, promos, giveaways, etc) https://mailchi.mp/2ca8c2db546e/wyq26… A1 Trading Stock Market Discord Community: Stock picks, market analysis, and more https://a1trading.com/stock-market-co… Check out our sponsor, TradingView.com! Sign up for an account for free here: https://www.tradingview.com/?utm_sour… Partnered Brokers: Hugo’s Way – https://hugosway.com/?refid=10233​ AxiTrader – https://www.axi.com/uk/live-account?t… Oanda – https://www.oanda.com/us-en/ Note, please do your own due diligence before making a decision to do business with any financial brokerage. I will make a small affiliate commission should you choose to sign up for either of these brokers. Thank you for supporting the channel!
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Element FX The Ultimate Forex Profit Super System

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We decided to give it the name ElementFX. Just like the most powerful elements of the world, when worked in combinations, it can produce enormous power and impact. Similarly, the most POWERFUL forex tools when used together, can produce a huge impact on your trading. We decided to implement highly effective formulas that can generate excellent profits.

ElementFX is a forex system that is comparable to having professional traders signaling you. You will NOT find a more well rounded system that is capable of gaining pips on all sessions with all currency pairs. With many of the great and powerful ea’s and systems, there is a “special” time frame that must be used. With ElementFX, there is no specific time frame it works better with. It works with ALL of them. We often get questions of which time frame or currency pair it works better with. Our answer to that is, everything PLUS much more!!

Yes! You need stop-loss levels? It projects the best stop-losses based on price action/support and resistance which are the best and most reliable way of determining stop-losses.  You need Take Profit Levels? It projects multiple take profit levels based on multiple formulas such as Fibs and Trend Line S & R. And all these levels can show up within a flash of a button you click. It projects it all for you! Even if you are a Fib trader, you can use the fibs alone and you will see a large improvement in your trading, if you use it wisely that is.

This system is highly dynamic and it can be an addition to any of your current forex systems that you use. There are just so many good things about ElementFX that it would take pages and pages to explain. We will leave it as a surprise to you. You are going to love this!

This is a real-time Buy Trade. ElementFX has sensed that the market has a very strong possibility of going up for you to make some profit. You can also see that it is around the trend line which has been a long known entry for the most professional traders and bank traders. And guess what? It plots it for you on the chart!

Source: https://elementfxsystem.com/

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Strike Trader Elite – Profitable Trading System Professionally Built With a Winning Team Backing It

Rather than us telling you about how great this system has been for us, we want to let the system speak for itself. The system takes into consideration many market variables which will weed out the majority of false signals. The system accommodates all types of traders. Whether you are a short term (scalper) trader, a day trader, or a swing trader, the Strike Trader Elite Setups works well for all of you! We wrote down the TOP 8 Currency Pairs the Strike Trader Elite System works BEST regardless if you are a scalping or swing trading.

In our Strike Training Bootcamp inside the membership area, we will explain in detail why we chose these as the BEST.vTo sum it up, after days of backtesting MANY pairs, these showed the highest winning percentage with our system.  These pairs all have a HIGH average daily range which makes them a no brainer to trade with  the Strike Trader Elite Trading System!

These custom tools are exclusively for the Meta Trader 4 Platform, Meta Trader 5 Platform, Tradingview, Ninja Trader 7 Platform, and the Ninja Trader 8 Platform.

MetaTrader 4 and 5  is arguably the most popular trading platform on the planet. Millions of traders all around the world with a wide range of needs choose this platform to trade in the market.
NinjaTrader Group, LLC together with its subsidiaries provides award winning trading software and brokerage services to active traders.Founded in 2003, NinjaTrader has evolved into an industry leader supporting over 60,000 traders around the globe with best-in-class technology, deep discount commissions and world class support.
Tradingview is becoming one of the most popular trading platform in the world. This platform is web based so there is no need to install this platform.

Source: Strike Trader Elite | Profitable Trading System

How to Find a Forex Broker That You Can Trust

https://www.pivot.one/share/post/5c1b42cbad59e77e07ff96c2?uid=5bd49f297d5fe7538e6111b6&invite_code=JTOJYV

Simple SAR Indicator – An Accurate Indicator Delivers Winning Trades in 5 Minutes Without Any Technical Analysis

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With all of the different markets to trade it is to no surprise that just one strategy alone can be hard to make money with consistently. The single strategy approach may win from time to time but ultimately it may break down and you are left to go back to the drawing board. For that reason alone, we developed a combination of different settings you could test with this indicator in different market conditions and time frames so that you can tweak you exit and entry approach. So really this is a the same strategy only it is a modified version for that specific market…….

Read more: https://info.tradingstrategyguides.com/jvzoo-sales-page-s-sar?aid=1

Strike Trader Elite Trading System – Discover The Forex Scalping, Trading & The Swing Trading Mode

This system has been tested for many years by professional traders that have been trading for 30+ years. You will see how to get easy and stable profit, without all the Risk!This system works for ALL Markets and ANY time frame. Scalpers, Day Traders, and Swing Traders are all going to make HUGE profits!

Strike Trader Elite is the NEWEST Winning System Tradingstrategyguides.com has built. It has a backdated testing log, proven results, professionally built, and a winning team backing it!The system takes into consideration many market variables which will weed out the majority of false signals.

The system accommodates all types of traders. Whether you are a short term (scalper) trader, a day trader, or a swing trader, the Strike Trader Elite Setups works well for all of you!We wrote down the TOP 8 Currency Pairs the Strike Trader Elite System works BEST regardless if you are a scalping or swing trading.

CBN Orders Banks to Sell Forex to Travellers Over the Counter — AdeLove.com|Best Nigerian Blog

All intending travellers can now buy forex over the counter with the presentation of passports and air tickets, the Central Bank of Nigeria (CBN) announced on Saturday evening. The bank also ordered BDCs to access dollars every Monday, Wednesday and Friday henceforth in a statement issued by its acting director of corporate communications, Isaac Okorafor. […]

via CBN orders banks to sell Forex to travellers over the counter — AdeLove.com|Best Nigerian Blog

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you
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Strike Trader Elite The Most Popular MetaTrader 4 Trading Platform on The Planet

This system has been tested for many years by professional traders that have been trading for 30+ years. You will see how to get easy and stable profit, without all the Risk! This system works for ALL Markets and ANY time frame. Scalpers, Day Traders, and Swing Traders are all going to make HUGE profits.

Which is why we are offering our Strike Trader Elite System at a FRACTION of the cost of what it is actually worth. In fact, once you go through our Strike Trader Elite Bootcamp Training Inside the Members Area and get your system running, you will know without a shadow of a doubt that you have a near 70% WINNING system at your Fingertips!

Source: Strike Trader Elite The Most Popular MetaTrader 4 Trading Platform on The Planet | Online Marketing Tools

Fibo Quantom – Unbeatable Forex Trading Indicator With Highly Profitable Signals

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If you’ve been trading Forex for a while and concerned about the profits (or the lack thereof) you’re making… I want to share some amazing inside-news… My team and I have just released Fibo Quantum. It’s a brand new Forex indicator that is based on scientific and more importantly natural laws.

These laws are very powerful but are often discarded. Our GOAL was to help traders make reliable profit in such a way that it is consistent over the long run and easy even for beginners. With Fibo Quantum indicator, you will always know with a lot of confidence…

When Exactly To Open And Close Your Trades To Make The Biggest Possible Profit From Almost Every Price Movement!Fibo Quantum Predicts Unexpected Price Movements with High Accuracy. 4 H1 Screenshots. +754 Pips Total, 3 Highly Profitable Trades. Power of Dynamic Signals in Action.

Fibo Quantum Adapts to Different Market Conditions. 6/6 Easy Wins. Its Signals are Simply Fantastic, 4 Wins / 0 Losses. Highly Accurate Trades with Fibo Quantum.

You Will Discover… How To Open And Close Your Trades To Make The Biggest Possible Profit From Almost Every Price Movement! Stick with me, because I’m about to show you how it works and how it can turn your trading career around…

Fibo Quantum will show you when to enter your trades and where to  set your TakeProfit and Stoploss levels.You will be executing trades exactly as shown by Fibo Quantum right on your chart and watching the price as it reaches TakeProfit levels
one after the other.

The more experienced you become with this tool, the better decisions you will make, and the more profits you will keep making.

It’s such a simple and smart set-and-forget tool that once you start working with it, you will start thinking like a REAL trader. You will no longer have any amateur trading ideas and attitudes.

The algorithms that make Fibo Quantum so accurate and profitable have been developed over years of painstaking research and analysis. We equipped Fibo Quantum with our own trading secrets and fine tuned the special algorithms used by the big banks and investment houses to multiply their profit in the markets.

This was only used by the big players, until now…

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Fibo Quantum has three trading styles that impact the speed of its signals. There are “Aggressive”, “Medium” and “Conservative” trading styles. You can try all of them and choose the one that best suits your own vision of trading and your preferences. Plus, for the more experienced traders out there – there is also “Custom” trading style that allows users to manually configure signals and gives even more flexibility.

Even someone with almost no trading experience can read the simple trading rules given in the User Guide and follow the indicator’s signals to consistently make good stable profit.

Instead of sitting glued-in to catch lucrative price movements like the average traders do, with Fibo Quantum you will get simple signal alerts every time there is a new trading opportunity. Fibo Quantum will also give you a signal when the BUY/SELL Entry levels are reached so that you can immediately open your trade.

The algorithm is developed in such a way that traders can make profits with their eyes closed. The signal alerts are sent via email, pop-up and mobile push notifications, so that you never miss any profitable price movements.

Fibo Quantum makes your trading exponentially successful and super convenient.

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The entire “Fibo Quantum” trading package, teaching you the truths behind fast and profitable trading, an easy-to-follow program full of screenshots and step-by-step guide that allows you to spend minimum time and make profit using the exact same methods used by me and hundreds of my happy clients. You will know and have access to everything we use.

On top of that you will also get unlimited access to my personal email support. You can contact me at any time and ask me whatever you want whenever you want. Listen, I am here for you every step of the way. I want you to prove yourself that you can do this. I’ll be there with all the motivation and support that you’ll ever need.

In addition, you will also get lifetime updates absolutely free. Yeah, if I find things that seem to work faster, better or easier, I’ll update the package and you’ll have access to the updated copy completely free. I want you to use the most up-to-date reliable trading tool available! And that’s what I am going to give you.

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Strike Trader Elite – Forex Trading System By Trading Strategy Guides

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We plan on adding the Strike Trader Elite System to a variety of OTHER platforms including, but not limited to, Meta Trader 5, Ninja Trader, Trade Station, Tradingview, Thinkorswim, and more!!

Our team is quick, and hungry, to get this system out to a variety of traders which is why we plan on adding this to each of these platforms. This will allow more traders like stock, options, and cryptocurrency traders, to enjoy these profitable signals!

The Strike Trader Elite system works in three different modes.The scalping mode, the day trading mode, and the swing trading mode. All HIGHLY accurate and ALL will make you money, we guarantee it!

These three modes cover EVERY traders trading style. And if you don’t have a trading style yet, not a problem, we will teach you in our Strike Trader Elite Bootcamp, what we recommend you start with today!
It all will be covered in our state of the art membership area

 

LET US SHOW YOU HOW EASY THIS SYSTEM IS:

Step 1: Attach our custom “Striker Trader Elite” Software to your Charts

Step 2: Wait for a “Buy” or “Sell” signal that our software will generate automatically. The Yellow line will automatically change to blue.

Step 3: Enter the Trade and Set up your stop loss and take profit based on what the system shows you

Step 4: Enjoy seeing 70% of these trades hit your target

Here are a few of the topics the trainings will cover:
  • Win to Loss ratios and Reward to Risk ratios for successful trading 
  •  Efficient money management methods 
  •  Position sizing and proper leverage for FX 
  •  Scalping & Swing Trading differences – the benefits of both styles
  •  Smart trade entry methods for Scalping and Swing trading
  • Best FX Pairs to trade and best times of day to trade 
  •  How to trade “News Release” events with precision 
  •  Advanced “in-trade” management for maximum profits 
  •  Support & Resistance levels and tracking 
  •  Developing key habits through “process based psychology” for successful trading

Our Strike Traders are welcome to share their ideas and thoughts about this system. Our group administrator will also keep our members up to date with any news and recommended trades to take!

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The system takes into consideration many market variables which will weed out the majority of false signals.
 
The system accommodates all types of traders. Whether you are a short term (scalper) trader, a day trader, or a swing trader, the Strike Trader Elite Setups works well for all of you!
We wrote down the TOP 8 Currency Pairs the Strike Trader Elite System works BEST regardless if you are a scalping or swing trading.
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