Forex Indicators

Day Trading Stocks vs. Forex Day Trading?

What are the advantages/disadvantages of both, and which one can potentially be more profitable? Also, which one would be better for a beginner trader (i.e which is easier?)? Thx a lot.

Public Comments

1. You can make money in both, but they are different paradigms. Stock traders sometimes have a hard time getting the hang of Forex. The main advantage of Forex are (1) you can work any time you please b/c you aren't restricted to NYSE market hours and (2) you've got more time to make a decision when you get a signal. Although Forex can drain your account quickly, there's more time to react than when you're trading a high volume stock.
2. i dont reccommend either. the pros will eat you up, take your money and spit you out. don't play with money you cannot afford to lose. forex has little commission but there is like a 3 pip spread so you are disadvantaged out of the gate. the swings are wild and manipulative. i think i'd try to swing trade on a weekly or monthly basis instead, stocks with a 1.5 or 2 beta. (volatility) to start out. user you tech indicators.
3. Both are risky. Forex is even more riskier because of the amount of political factors involved. Both should be avoid by beginners. Be an investor, not a speculator.
4. Forex, you can trade anytime, but the investment benefits suck compare to a Stock exchange investment.
5. The Forex market is 24hrs 5 days a week, over 1.5 trillion a day is traded. High liquidity, 100:1 and higher leverage, you can open an account for as little as $300. There is no restrictions on short selling. Stops on the forex are guaranteed to be filled. You can be in a trade for one minute or months. You cannot lose more than you have in your account, you will never receive a maintenance call. But it is a high risk investment.
6. Which can be more profitable is a loaded question, and depends on the individual, the platform you use, and a host of other things. Ultimately, the answer to this question is determined by how much risk you can take on; not necessarily that you should. If you day-trade stocks and have $25,000 in your account, you can trade on 4:1 leverage. That is considered to be very risky. If you trade stock index futures, you can obtain 20:1 or even 40:1 leverage. You would never want to trade at this incredible amount of leverage, but it's available, and theoretically, this would be "potentially more profitable," but in reality, potentially a death trap for a beginner. In forex, you can obtain up to 200:1 leverage. Wo! How much trouble do you think you could get into now? Even though this is "potentially more profitable," not advisable. The leverage in forex can be scaled down to be no more risky than trading stocks. One of the main advantages: you can start with as little as $250. Half of learning how to trade the forex is learning how to trade gaps, caused by the reports, and momentum trades. The rest is kinda ho-hum by comparison. The mistake most beginners make is taking on too much risk; leverage is a killer. There are no get-rich-quick schemes. Slow, steady and methodical, regardless of outcome, and keep coming back to trade again, rather than blowing out in the first month with too much leverage.
7. I am not an expert, though I can answer one of your question, Day Trade is better. I recieved this resource for a daytrade web-site and it is very very beneficial. You invest, learn, trade and win. With most things we do in life we always have to learn from those who want to teach us their knowledge, but its even better when you are benefiting from the growth of your money. If you would like me to give you the information feel free to e-mail me. After you take a look at this website I can give you some helpful hints as to how to go about this web-site. I've spent a lot of time reasearching this particular web-sire. GOod Luck.
8. The advantage of Forex trading is that you can start with a Mini Account with $200.00 investment. You can also trade any time of the day, Sunday Evening to Friday Evening. Forex Market is very volatile so you get good opportunities to make money fast. Forex Trading is also the safest if you know how to trade. Forex Market is driven by the Economic News Releases by different governments of the world. If you know how to trade the News, you will always make Profitable Trades. I have been trading for years but had never been profitable until I met my Mentor Dr. Zain Agha just over 2 years ago. I learnt from him how to Trade the News and ever since I have never looked back. I am now a Full Time Professional Trader, I do not have to employ anyone, I am my own Boss, I don't work for anyone else, just for myself. I can also trade when I am abroad on holidays, all I need is my laptop with me and an internet connection. If you need any other information, you are welcome to contact me through email. John
9. If you are a beginner you will most likely be very passionate about trading and want to know everything about it and sooner the better especially how your position will turn out. If this sounds like you then consider this, there are 120 hours per week of Forex trading hours vs less than 40 hours on stock exchange. And you will have to wait for it to open besides being detracted from the main task at hand which is trading. You will be detracted by stocks becasue you will have to decide on which company has growth potential or declaring dividends and you will have to decide which stocks to trade whereas in Forex its simple there are only 6 majors pairs. Even then it can be narrowed down to 3. A market that literally never sleeps. Thus making the technical charts pattern all the more reactive and patterns forms much faster and clearer. Thus for beginner technical trader definitely Forex Charts. Implying Forex Trading. If chart pattern is the raw material then Forex Trading will make a better product. The tricky thing is handling the leverage part of the trading. That you might want to read up on some books on how to handle the money managment side of leverage Forex Trading. If you want, read Dr Alexander Elder's book. But just to give you a glimpse, Forex leverage is 200 times. That means you have 200 times potential to 200 times a loss or 200 times a profit. Just imagine if without leverage you can only make $5 per trade. But with leverage now you can make $1000. Vise versa. Without leverage, you will only lose $5, but now you will lose 200 times, = $1000. And if you have $1000 equity. On 1 trade you will have lost the $1000. ANd if you start with $5000, it takes you only 5 trades to lose $5000. or make $5000.
10. I switched from stocks to forex and its awesome, instead of hundreds of stocks there are only about 15 pairs, you can learn all of them well, liquidty is massive compared to stocks. No commissions, continuous trading session 24 hours, no morning gap up or gap down, trends develop slowly and last longer, better leverage than options. Thank God for the spot forex. Good Trading Mark McDonnell www.forexearlywarning.com
11. I prefer forex cause I can earn 60% more per month .
12. My vote would be on Forex. Though there are many reasons I can give it simply boils down to the fact that you have far few instruments to watch with Forex, you can start with a whole lot less money, like $300 for a mini account, and if you are primarily interested in day trading you'll be able to trade 24 hours / day, which may be good for you if you have a day job. Check out http://www.TradeMoney.com for the free books there, which deal a lot with Forex day trading.
13. Curious About The First Commercially Available Stock Trading \"Robot\" Which Earns $346.77 Per Week (Managing $1000 Capital). < http://firewind99.affstocks.hop.clickbank.net/ >
14. Personally, I feel that Forex trading is better suited for beginners... provided that you're well educated on the subject, especially in terms of money management and the risks involved. I'm currently giving away a free 26-page Forex trading guide at http://www.forexsystemprofits.com and you may want to download it for a read.
15. Forex Trading is more easy and 24 hour per day