Differences between Forex and the Stock market

Differences between Forex and the Stock market Visitors: 471 ★★★★★


The currency market is more difficult to make money in. You can get rich both in the stock market and in the currency market, but it is extremely difficult to do this in the currency market. That is why the stock market attracts its fans. Forex has a slight advantage over the stock market. It consists in the fact that it has rare price gaps. In addition, Forex is constantly running, and the stock market closes after the business day.

The stock market is becoming very difficult for traders in its bearish stage. Think back to 2008. This was a time when company stocks were falling in value day by day. Even the shares of food service companies that had been holding for a long time also went down in their price.

Forex Stock Market

A falling stock market makes big bounces up. This happens because it is not profitable for anyone to make company shares cheaper. A growing stock market is just growing. Sometimes there are large drawdowns, but they are relatively rare. But in a bear market, UPS and downs alternate with an incomprehensible cyclicity. A bear market in stocks is best left on the sidelines. The more experience a trader has, the less they want to mess with a falling stock market. But in a growing stock market, you can earn a lot of money without taking too much risk. For example, you can increase your capital 10-20 times without much risk in the first two years of a bull market in stocks. It is always very difficult to earn money on the Forex market.

You can't look for thrills in the currency and stock markets. There is nothing worse if a gambler sits down at the computer. Dealing centers, of course, can be happy about this turn of events. The gambler and his family may suffer greatly. On the stock exchange (any) you need to earn, not lose money. It is necessary to receive not emotions, but earnings.

Calmness in any market, a trader should be calm. What state helps you earn money? The opposite of excitement. Peace of mind is what all traders need. Identify the source of stress and remove it. How do you sleep? Do you have bad dreams? You may just be trading very big. Reduce your work volumes. You can develop a number of computer programs that would minimize your personal involvement in the trading process. You should pay close attention to your intuition. Some speculators work on an intuitive level, but they can succeed if they are experienced enough. You can bring a ship to its destination without a compass, but you need to know other aspects of navigation well. You can navigate by the Sun, but only experienced navigators are able to do this. And it is unlikely that they will be able to do everything better without a compass. Trading is a vocation. Were you born for this business? It's hard to say, but there's no one to test you. It is not a fact that an experienced trader will tell you the truth. Typically, large speculators, the cynics and all the questions are answered reluctantly.

Start trading on a demo account in the stock market and in the currency market. After a few months, you will understand where your chances of success will be higher. In the new growing stock market, of course, everyone likes to earn money. But a falling stock market or currency market-which is better? This question is difficult to answer. Best of all, neither one nor the other. It would be much more correct to wait for a new rising trend in the stock market.


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