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Re: Forex Vs Stocks
Hi
There can never be any comparison. Stocks are slow moving in general, and provide adequate returns in bullish trends. However to say, as a seasoned stock trader, I make 40-60% per annum just does not provide any satisfaction. The risks are all to real - bull trend turns to bear trend, in the market for too long - say 3 months on a stock - I personally have a fear for October and November months. Forex does not have these seasonal or micro influences. It trends either way and you can trade it, where stocks are one way - long. I exclude options and warrant type trades.
I do believe one can grow one's personal wealth with stocks, however, there are too many dead days on the local market - where even the most liquid of stocks show little volatility.
Forex, on the other hand, has limitless opportunities, and you decide the time frame that you trade. Financial data and analysis will provide you with little insight into any currency. Forex requires an understanding/interpretation of the currency pairs position relative to the coupled pair.
I have traded stocks for 18 years and cannot see any real comparison. I would however state that one can occupy a position on stocks or forex and provided your entry was reasonable, one could make profit on either, provided that you are prepared to float out the negative situation long enough. The market would normally return to the middle ground at some time or another.
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