Forex Vs Stocks

[vishalshan]

Some of my friends are able to make decent gains thru stock picks and spend less screen time and less tension compared to Forex.

Just wanted to compare them based on ROI, efforts involved, risk factor and learning curve.

Those who have done both, please share your experience and let us know which is worth putting efforts as novice on both.

Shan

[Big Pippin]

Originally Posted by vishalshan

Some of my friends are able to make decent gains thru stock picks and spend less screen time and less tension compared to Forex.

Just wanted to compare them based on ROI, efforts involved, risk factor and learning curve.

Those who have done both, please share your experience and let us know which is worth putting efforts as novice on both.

Shan

Very good discussion. It will be interesting to see what others say.

I'd like to know how your friends pick stocks because when I was in the stock market, I had to do loads of research. I subscribed to all sorts of stock magazines, read up on the latest craze and basically spent my whole time doing research. So as far as less screen time goes, that wasn't the case for me. In fact, I spent more screen time looking for stock picks.

Also, I wouldn't say there is less tension involved in stocks. Unless you hedge your positions with collars, you are at a large risk because your money is succeptable to being wiped out with a snap of a finger (i.e. bad earnings, scandals, economic factors).

With the forex, I actually spend less screen time because I just look at the current economies of the pairs that I trade. I see which economy is rising and which one is falling and from there, I make my trade decisions.

Also, with the forex, I can set a stop or even hedge my position so that my risk is already defined. Since I practice good money management, even if I were to lose on a trade, I don't get stressed out about it.

So overall, I think I like the forex lifestyle better. But, if your friends can do stocks effectively, more power to them

[ecology10]

Originally Posted by vishalshan

Some of my friends are able to make decent gains thru stock picks and spend less screen time and less tension compared to Forex.

Just wanted to compare them based on ROI, efforts involved, risk factor and learning curve.

Those who have done both, please share your experience and let us know which is worth putting efforts as novice on both.

Shan

Well I haven't traded in stocks. And I have just begun to trade in futures like forex.
I take forex to be on a short term trade. Meaning the time-frame I am looking at for my profits/losses is from 5min to 4hrs.
And in stocks one does make money in day, as there is day-trading. But usually one is shooting for atleast weeks to months to see gains.
There are exceptions like BOT the day it was added in NYSE opened at $50 something jumped to $83 the day it closed.

Due to margin, forex accounts have leverages. Hence more gain on a investment which worth more but you paid a margin (as a investment) of the actual cost.

In stocks too there is option trading where one buys stocks for less than they are worth etc ...

Personally I think I can make more money FAST in forex (OPPOSITE IS TRUE TOO)

BUT AGAIN ITS MY OPINION >>> DEBATABLE EITHER SIDE

[vishalshan]

Originally Posted by Big Pippin

Very good discussion. It will be interesting to see what others say.

I'd like to know how your friends pick stocks because when I was in the stock market, I had to do loads of research. I subscribed to all sorts of stock magazines, read up on the latest craze and basically spent my whole time doing research. So as far as less screen time goes, that wasn't the case for me. In fact, I spent more screen time looking for stock picks.

Also, I wouldn't say there is less tension involved in stocks. Unless you
So overall, I think I like the forex lifestyle better. But, if your friends can do stocks effectively, more power to them

Hi Big Pippin,

Thanks for sharing your exp..My friends have a network of people who look at the stocks at part time. They enter into good stocks when they are at the lowest prices. Basically they ONLY buy at the bottoms of good stocks. When one guy identifies some good stocks are available at rock bottom price, they pass the message to others in the group. They buy it, hold it and sell it when it gets back to its normal price.

They have burned their fingers initially but seems to be doing fine nowadays. But not exactly sure whether they are consistently profitable on this. But one thing is that they don't spend that much amount of screen time individually as I do on Forex !!

Shan

[Trader01]

Originally Posted by vishalshan

Some of my friends are able to make decent gains thru stock picks and spend less screen time and less tension compared to Forex.

Just wanted to compare them based on ROI, efforts involved, risk factor and learning curve.

Those who have done both, please share your experience and let us know which is worth putting efforts as novice on both.

Shan

Stocks vs Forex = Volkswagon vs Porshe (turbo)

6,000 stocks to research = giant headache. Multiple countries' stocks? Ouch!

Forex? Just EUR/USD; just one chart and you can make a solid living for the rest of your life or death!

You can also go to an early grave @ the speed of light.

Forex can both thrill and kill.

A strong shark repellent is a requirement.

The only lesson that a broker will never learn? ... "the greatest thrill is not to kill!"

[Big Pippin]

Originally Posted by vishalshan

Hi Big Pippin,

Thanks for sharing your exp..My friends have a network of people who look at the stocks at part time. They enter into good stocks when they are at the lowest prices. Basically they ONLY buy at the bottoms of good stocks. When one guy identifies some good stocks are available at rock bottom price, they pass the message to others in the group. They buy it, hold it and sell it when it gets back to its normal price.

They have burned their fingers initially but seems to be doing fine nowadays. But not exactly sure whether they are consistently profitable on this. But one thing is that they don't spend that much amount of screen time individually as I do on Forex !!

Shan

I like Trader01's comparison. That's kind of my belief. Just out of curiousity, what takes up a lot of your screen time? Analyzing charts? Fundamental Research? Send me an email and I might be able to help you lower your screen time. I honestly don't spend that much time at the screen. I can't staring at the computer all day

[MacDFx]

Stocks require more fundamental analysis, IMHO, than does FX. A major pair is unlikely to CRASH anytime soon, unlike any given stock on any given day.

Plus with spreads vs. commissions, the perceived bite from your broker is cumulatively less. Add in the huge leverage and no downside margin risk (only your capital in your account is at risk as your position is closed out) and you can see the potential for huge gains is there.

[cornellj]

Originally Posted by MacDFx

Stocks require more fundamental analysis, IMHO, than does FX. A major pair is unlikely to CRASH anytime soon, unlike any given stock on any given day.

Plus with spreads vs. commissions, the perceived bite from your broker is cumulatively less. Add in the huge leverage and no downside margin risk (only your capital in your account is at risk as your position is closed out) and you can see the potential for huge gains is there.

Hallo MacDFx,

I agree that a major currencypair is unlikely to crash.

I have bought stocks for almost 30 years now. During this time I have seen single stocks having huge gains or losses in a single day. Yesterday one share on the South African Exchange rose 50%. The same goes for losses. I have seen bluechip companies shed 50% of their marketvalue in 1-3 days. This is one of the best reasons for trading forex (the majors only) for me. The most disastrous swing in a day in one direction on Forex has in the past 5 years never exceeded 400pips which is roughly 4%. A swing of 4 % can be handled a lot better than 50%. And if you need to close your position you can find a buyer.

For me Forex is the safest financial instrument available anywhere.