Forex is slightly different as can trade with a leverage so, you can in theory buy/trade $10000 dollars of a currency for a lot smaller amount of equity. Where shares you usually buy a share at face value and hold on into it. Shares are a lot longer investment, unless you buy in to iPos. Most share buying is long term investment. Where forex you can make profit every day.
All financial markets have a unique personality. This is true of different FX pairs as well. I trade ES and CL futures and I have a different strategy for each. What works with CL does not work with ES and what works with ES is impossible with CL.
ComebackKing posted: All financial markets have a unique personality. This is true of different FX pairs as well. I trade ES and CL futures and I have a different strategy for each. What works with CL does not work with ES and what works with ES is impossible with CL.
True; but I am using only Price Action trading strategy for all of the Forex pairs including Gold.
yaa right there are many sources to learn from which are available for free. Engaging yourself on trading forums also help you learn a lot apart from courses on fx on babypips and some youtube tutorials.
See trading is something that’s similar for every field, however if you compare stocks and forex, do watch out for the big volatility difference between the two. No same strategy will work for both these markets, so be careful. The concept behind stock market and forex is completely different.
there are thousands of stocks while there are few currencies to trade in the forex market in stock trading, you have to research a lot. But in forex, once you understand the currency patterns, it is just a repetitive automation job to trade them. you have to buy stocks in order to sell them. But in forex trading, you can sell currency pairs even without buying them it takes a lot of time to get good profits(200–300%) in stock trading. While in forex you can even earn millions in a matter of time (provided you know how to do it) your stocks would rarely go below zero. But with forex you can go negative or bankrupt within a matter of few seconds. :)
Of course they are. Forex trading is more about speculations, as currency price depends on a lot of actors, that are trying affect. Central banks and huge funds are buying and selling currency in order to reach their goals. As a result, forex gives more opportunities for common traders. Forex is more about short term trading and the most popular strategies are scalping or intraday trading. Opposite, stock market is about long term trading and the most popular strategy is to find undervalued shares to buy them and than sold in higher price. I can say that stock market is less risky but involves more evaluating and is unprofitable for small investors, as they can't buy shares, they simply haven't enough money.
News for Forex is almost instant for everyone ,news for shares could have been discussed weeks ago at a board meeting in private ,currency is bought and sold for many different reasons many times in one day,some reasons would surprise you , both can be very profitable but stocks lead the way in say a Bull market ,sometimes though FX does have Super Trends but not often ,day trading FX can be profitable if you manage risk,Stocks are driven mostly by speculation , FX is not.
It's absolutely different, when you do stocks you investing your money into something which already do have some possible value and probably resold several times anyway. I do want to keep it going for many many reasons. With forex you simply speculate a lot of times.
Though they are similar to generate profit when there is changes of price in short term, One major difference that you can tell is that Stock Trading is based on buying or selling of shares of an individual companies meanwhile Forex Trading is focused on selling or buying of the currency between two country pairs.
Andromaris posted: It's absolutely different, when you do stocks you investing your money into something which already do have some possible value and probably resold several times anyway. I do want to keep it going for many many reasons. With forex you simply speculate a lot of times.
What do you prefer personally, forex or stocks? Are you trading any currently?
Stock trading involves buys and sells shares of individual companies, while FX trading involves buys and sells currency simultaneously of t two different countries. FX is much more liquid and stable than stocks. Trading both FX and stocks requires a solid understanding of how the market works and practice to get a stable profit.
No it's different. Forex markets moves based of economic indicators of the related currency countries. But share price of a company behaves based on that company performance. But yeah if we talk about technical analysis, it's almost same.