Forex Trading Advantages over Stock Trading

November 13, 2009 – 9:58 am | by Steve
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Just when many of us thought that stock trading is the best business venture for us, we never expected that twists happened. Today, experienced investors and business people are avoiding the stock exchanges like they are the plague right now.

The stock market is in a downward spiral and no one really knows when it will recover. That is not to say they aren’t investing. In fact, they are making high returns on their money every day. So just where are they getting all this profit? In the currency exchange market, better known as Forex.

zahipedia-forex-currency-trading

Big investors understand that although the Forex market can be volatile at times, it offers an advantage over a failing stock market. There are still good trades to be had there. By having the knowledge of the market and the skill to make these trades, they are still earning good returns. The first advantage of forex over stock trading is the leverage. With forex, you can transform your hundred dollars into thousands in just under an hour.

That is very common and cannot be done if you are trading stocks. This is the first advantage of forex trading over that of stocks. The second advantage is that Forex trading is done on your schedule. There is no need to wake up at the wee hours of the morning and begin researching your buys and sells. You also don’t have to wonder if those decisions are going to be influenced by gaps in the market. Since trading goes on 24 hours a day, you can make all of your trades when you are awake and alert. This is a tremendous advantage when dealing with money.

The third advantage states that you can still make good in forex trading whether the market is rising or falling. With stock trading, you can’t possibly do this. You really need a lot of money if you are to deal with a falling market. You can also easily follow the latest trends with forex trading. One big advantage you have over stock trading is that when trading Forex you have no commissions due to a broker. If you are new this can be a big deal.

A lot of the reason so many new people fail in the stock market is that they tend to back out of a trade once they discover that it might not be such a good idea. Part of their money is taken by the stock broker every time they buy and sell leaving them with less money on every unsure trade. If you are a new trader there are likely to be more instances when you need to back out of a trade and that can add up fast.
Given the advantages mentioned above, it will be your choice whether you will engage yourself with forex trading or stock trading. But if you are to ask me, I say that you go to that business venture that will give you the greater advantage. As far as this is concerned, I urged you to be engaged in forex trading.

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  1. 3 Responses to “Forex Trading Advantages over Stock Trading”

  2. By Rocco on May 10, 2011 | Reply

    Great article, thanks for sharing your insights

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