Discussion of Forex Trading and Currency Trading

Forex vs Stocks??????

I would like to compare both based on ROI, efforts involved, risk factor and learning curve.

Those who have done both, please share your experience and let us know which is worth putting efforts as a newbie on both.

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7 Responses to “Forex vs Stocks??????”

  1. Liberal AssKicker Says:
    February 3rd, 2009 at 10:36 am

    You really can't.

    Stocks vary so much that there's really no comparing them to anything. Some companies regularly issue dividends, but most don't.

    Most investors in the stock market do it for the capital gains, not the dividends, and gains are impossible to predict.

  2. Common Sense Says:
    February 3rd, 2009 at 10:36 am

    I'm assumming you're reffering to intraday trading;
    = = = = = = = = = = = = = = = = = = = = = = = =

    I find there's a time for both. When the stock market is crazy the Forex market can be a better bet using technical analysis.

    The FX market in general can be more dangerous. The ROI is significantly better because of the leverage of, on average 100 to 1.

    As far as effort is concerned…. the learning curve can be 3-5 years for either. The basic learning curve is the same for both;
    Technical Analysis
    Trading Money Management
    Trading Psychology

    The money managment is much more intense in FX….. but you're dead in the water if you don't have good money management skills in stocks…… so it's just a question of degree. The traders psychology plays an important role in both.

    The bottom line is… learn first with what you feel most comfortable at. Paper trade for months using your own developed format. Remember that your results in Paper Trading are not a good indicator on how well you'll do….. but it will move you in the right direction.

    I try to read a new trading book once a month… there are several favorites that I re-read regularly.

    This is hard work that requirers dedication and discipline. Trading is a skill… it is not gambling. It is not luck.

  3. i m mainly into POG trading.. intraday and medium term.. i am master in trading phsycology..

  4. In my opinion, Forex is a lot better.

    In the stock market, you have about 2000 stocks to look over. You have to analyze their charts, quarterly earnings, and conference calls among other things.

    As for the Forex, you just have to follow 5 or 6 central banks and their currencies. And the best part is you can still make money during a recession.

  5. Anil Kumar Raju Says:
    February 3rd, 2009 at 10:36 am

    Forex is Better than stocks ,comparing ROI,efforts,risk factor ,selling currency is always best ,coz u can estimate what's going to happen ,you can stop your loss.But you should learn about forex deeply.

  6. Forex:
    Better ROI than Stocks
    Efforts: More than Stocks
    Risk: Equal if managed smartly otherwise riskier
    Learning Curve: Almost same

  7. Trade Forex Automatically from Home Less Than 10 Hours/Week & Make More Than The Average Full Time Employee!

    http://www.forexsoftwarereview.net

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