[PipCrawler]

I know this thread is about forex vs. stocks, but I've been trading forex and stock options and i'd like to post here what i see as the pro's and cons of both as they apply to the beginning trader:

Forex: Low start up cost, liquidity, response to technical analysis(most importantly support and resistance), make forex more attractive to a new trader wanting to jump into the world of trading, especially those who want to do intraday positions. Longer term positions however are not favorable to the new trader because of the high leverage, unless they have large amounts of cash reserves. Also, the forex are much more volatile which can be very dangerous to the novice trader.

Stock and Equity Options: I like options because you can build directional and non-directional, short term and long term positions with controlled risk. Requires more start up capital, and getting filled at the prices you want aren't always the case like in the forex market. Also, the learning curve with options is higher because i think it's very important for a trader to have a full understanding of the "greeks" along with fundamental and technical analysis before they start trading.

with that said my preference is the forex for short term trading(intraday to a day hold time) and stock and equity options for longer term(1 month to 3 month hold time). Hope this helps...