Education
FOREX VS STOCKS
- June 12, 2020
- Posted by: StrictlychartsFx
- Category: Education Trending Topics
You may be asking, what is the difference between trading forex cross pair currencies in comparison to trading stocks? Well… whilst the stock market is the most traditional method to profit from an investment, it can turn into a time consuming and daunting experience, since there are tens of thousands of companies to choose to invest in out there. It is rather difficult to perfect a system that will make you more than 10-15% returns on a yearly basis and it is impossible to truly know when a company will decide to go bankrupt or fail completely. This is not to say one cannot make exceptional gains trading stocks, however it carries with it an immense risk and uncertainty when trying to play individual stocks for 20-30% gains in a short period of time.
In comparison to stocks, the Forex market is far simpler in nature, although it may entail a lot more self-education, since there are not as many commercial TV shows and learning guides dedicated to FX trading as there is with stocks. You should also note that there is in fact no central market place for the forex market and trading is said to be conducted ‘over the counter’, which is unlike stocks where all orders are processed via the central market place such as the NYSE and for Jamaica the JSE (Jamaica Stock Exchange).
Would you rather stay up to date with 2800 business models or “The six major” Forex currency pairs?
I believe I know the correct answer if you’re a sane individual. The NYSE formally known as the New York Stock Exchange has
approximately 2400 companies listed while the JSE has approximately 50 companies listed on the main market. The Foreign Exchange market
however, has a dozen of currency pairs but the majority of the market trades
the currency pairs labeled as the “Major Pairs” which consist of six (6) currency pairs. Therefore which one would be much feasible to focus on? I’ll proudly say the latter. In comparison to stocks, the Forex market is far simpler in nature, although
it may entail a lot more self-education, since there are not as many
commercial TV shows and learning guides dedicated to FX trading as there is with stocks.
Other Advantages of Forex Vs. Stocks
Based on the content shown above we can clearly see the caliber of how much precedence we as Forex traders have over “other financial markets”. This is just the cherry on top as there is much more advantages which is displayed in our online course.
IS FOREX TRADING FOR ME?
Find out here!