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Forex or stocks

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forex or stocks

Alright, so your lucky numbers came up and you finally hit the jackpot. Now, where should you invest? At first glance, you forex think that this is a no brainer — everyone knows stocks are the better investment, right? Stocks have come under quite a bit forex scrutiny in recent years after the famous dotcom forex and bust of the late 90s. And more recently corporations have faced further regulations in the wake of the Enron-related scandals and the advent of Sarbanes-Oxley. Forex trading is a relatively new investment vehicle which is catching steam and offers many distinct advantages over traditional stock trading. There are over 8, stocks listed on the NASDAQ National Association of Securities Dealers Automated Quotations system stocks NYSE New York Stock Exchange combined. How many major currency pairs are there? The general consensus for that answer is between 4 and 6. So, instead of constantly scouring article after article for hot stocks you can stocks exclusively on just forex few currency pairs. This allows you to specialize in particular currency pairs with a much narrower focus. The stock market can often become stocks and it is extremely difficult to become an expert on each industry represented stocks a stock exchange such as NYSE or NASDAQ. Leverage is the ability for an investor to use various financial instruments such as margin accounts to increase the potential return on an investment. The maximum leverage for stocks is typically 2: Forex trading allows you to use much larger ratios of leverage Leverage is one of the most appealing factors of stocks Forex market; however, investors should note that trading using leverage may increase potential losses as well as forex on any given stocks. The major equity markets are typically open only during normal U. In contrast, the Forex market is open all day long. Most brokers are open from Sunday at 2PM EST until Friday at 4 PM EST and usually have customer service available anytime. With Forex, you have the ability to trade during the U. This allows you to create your own trading schedule — instead of being tied to the opening and closing bells of the New York Stock Exchange. No matter which way the currency market is moving, profit potential forex risk exists in the Stocks market. Unlike stock markets, Forex does not have any restrictions on short selling. Sounds too good to be true? Currency trading involves the buying and selling of currency pairs and investors can buy either side of that pair. Are you tired of not getting what you pay for? In Forex, your trades are instantly executed under normal market conditions. You can be almost certain the price you clicked is what you get. Most brokers will guarantee stop, limit, and entry orders. Forex markets do not have a centralized exchange location. All trades are executed directly with the institution selling currency. By eliminating the middlemen usually associated with stock trading in the currency market, Forex traders can have faster access with lower costs. Forex brokers usually do not stocks any commissions or transaction fees to complete a currency trade. This spread is always fully transparent and you know exactly how much the broker is making — free of charge to you. This results in Forex trading costs which are lower than those of any other market. What did you hear? You probably heard recommendations by an analyst to buy such and such stock or to hold a particular stock, etc. The relationship between analysts, brokers, and investment houses is a tricky one. No matter how much government intervenes there are always going to be analysts that drive up the value of a particular IPO or brokers that receive higher commissions forex selling a particular stock. The size of the Forex market makes it very hard for a government, bank, or hedge fund to influence the value of a particular currency pair. The currency market is driven by global economic forces which are much harder to control and manipulate. Why does Warren keep it a secret? The answer is that the stock market is more easily influenced by large funds buying or selling of a forex stock. The number of shares for a particular stock is relatively small when compared to the currency of a country. The incredible size of the Forex market insulates it from the power of large investors or funds to sway the market. We have listed several reasons why we think Forex trading offers an advantage over trading stocks. Hopefully some of these explanations will motivate you to look into currency trading. Many investors supplement their stock holdings with positions in the Forex Forex. Others decide to make a career out of Forex trading and forego stocks completely. No matter how you decide to incorporate currency trading into your portfolio, hopefully you now know how advantageous it can be. Pips, Lots, and Leverage. We respect your email privacy. Please note that Forex trading involves substantial risk of stocks, and may not be suitable for everyone. Stocks Alright, so your lucky numbers came up and you finally hit the jackpot. Less is More There are over 8, stocks listed on the NASDAQ National Association of Securities Dealers Automated Quotations system and NYSE New York Stock Exchange stocks. Leverage Leverage is the ability for an investor to use various financial instruments such as margin accounts to increase the potential return on an investment. Always Open for Business The major equity markets are typically open only during normal U. Bear or Bull forex Who Cares! Instant Trading Are you tired of not getting what you pay for? Eliminate the Middleman Forex markets do not have a centralized exchange location. Commission Free Trading Forex brokers usually do not charge any commissions or transaction fees to complete a currency trade. Which Reason Appeals to You? forex or stocks

Investing Basics: Forex

Investing Basics: Forex

2 thoughts on “Forex or stocks”

  1. ankv says:

    In 1933 Hill became Reader in Epidemiology and Vital Statistics at the recently formed London School of Hygiene and Tropical Medicine (LSHTM).

  2. amatorik says:

    There will be a bigger and bigger differential head as time goes on.

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