Why you should trade in Forex and avoid stock trading


Now days you must have seen many advertisement to start investment in Forex trading. They shows that traders are making huge profit. But what is the logic behind the scene? Why should a stock trader divert his investments to Forex trading? Is it safe at all? Is really Forex trading is better than stock trading? To know more details about the comparison, check out the article below.

Which is a better earning opportunity between Stock trading and Forex trading to trade and make money?


As per my view Forex trading is much better than stock trading and in support of that I am furnishing some reasons below.

Reason 1


Forex market is spread worldwide and millions of traders involved from worldwide which create huge liquidity and volume as such you can get a quick entry and exit where as in stock trading there are limited stocks are open for trading as such it take time for creating position and also always not possible to get all quantity you placed.

Reason 2


Forex market does not affect until unless there is massive economy news come but stock market can be affected and get volatile with small news also.
Some individual stocks also get affected by their internal news whereas there is no chance of volatile in Forex with such small news.

Reason 3


Forex is a 24 hour open market which allows you to trade as per your convenient time! If you are a working person you can trade at evening or at night also. But stock market is open for limited period which does not allow full time professionals to get involved.

Reason 4


In stock market you are not allowed to create short position. Always you need to create long position but in Forex you can create long or short position as per your wish or suitability. So you can follow the trend of market. If market going down, you can make profit in Forex by creating short position.

Reason 5


In stock trading you do not get leverage to create big position (until unless you have margin funding facility from your broker), so it is difficult to become rich by using very small amount whereas in Forex you are getting good leverage and by using that a small investor also can make huge profit in short period of time.

These reasons can go more and more.

The main important thing to remember that you must have heard about huge crash in stock market either due to economical news or any political issue. But till date there is no such news in Forex trading as it is a combination of whole world economy and political situations.

From the above comparison you must have understood that Forex trading is much better than stock trading.

Which has some unique features like 24 hour opening of market, unlimited earning opportunity with lower investment amount.

But point to be noted that Forex trading need high level of knowledge and learning skills. So never ever try to make overnight money and stay patience to make money from Forex.

One more point I would like to add about advantage of Forex trading is when you get involved in Forex means you need to know major currencies and to predict their movements and direction. Also you need to get updated about their economical status, policy, political situation etc.

So, it increases your world knowledge and you might find interest to visit all the places after earning handsome money.


Related Articles

Procedures For Starting An Online Trading Account

The demand of online trading is increasing in the share market. This article provides all the necessary information with regards to online trading account. It also provides procedures for online trading account. This article also introduces two different types of online trading.

How to do commodity trading in India.

Want to earn some extra money by trading in commodities? The basics of commodity trading with the ways to trade is explained in this article. Information on various platforms by which the trading is done is also given.The brokers with whom the account can be opened and the trading can be started are also listed. In a very lucid way, the trading techniques have been explained.

Basic Stock trading tips

This article gives some basic stock trading tips and how to have a good trade in turbulent market.

More articles: trading

Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: