Which Should I trade - Stocks, Futures or Forex etc.?

This is a discussion on Which Should I trade - Stocks, Futures or Forex etc.? within the New to Trade2Win forums, part of the Reception category; For me Forex fits perfect. As it's the biggest Market with the biggest liquidity! And you are able to use ...

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Old Aug 28, 2012, 3:45pm   #16
 
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Re: Which Should I trade - Stocks, Futures or Forex etc.?

For me Forex fits perfect. As it's the biggest Market with the biggest liquidity! And you are able to use leverage. MT4 is a simple trading station, you should give it a try
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Old Aug 30, 2012, 6:24pm   #17
 
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Re: Which Should I trade - Stocks, Futures or Forex etc.?

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For me Forex fits perfect. As it's the biggest Market with the biggest liquidity! And you are able to use leverage. MT4 is a simple trading station, you should give it a try
Yes, Forex is the biggest market with high liquidity and Spot Forex is the preferred playing field of the deluded. NO; don't give MT4 a try. It was developed by Russian programmers with the express purpose of allowing market makers to cheat their clients.

If you want to trade, then trade in a market with a regulated exchange. The commodity futures are as good as any but, after 25 years of trading, I've seen nothing to beat physical ownership of equities. Leverage can be an asset but, it can, also turn a small liability into a catastrophic loss.
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Old Sep 2, 2012, 8:32pm   #18
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Re: Which Should I trade - Stocks, Futures or Forex etc.?

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Yes, Forex is the biggest market with high liquidity and Spot Forex is the preferred playing field of the deluded. NO; don't give MT4 a try. It was developed by Russian programmers with the express purpose of allowing market makers to cheat their clients.
he can try it for charting purposes, at the least.....
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Old Sep 11, 2012, 3:09pm   #19
 
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Re: Which Should I trade - Stocks, Futures or Forex etc.?

Depends on a few things. Are you going to be a Technical trader only or are you adopting another style? this is key to what you should trade. Also what is your goal and timeline?
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Old Sep 2, 2013, 5:42pm   #20
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If I’m completely honest I’m not that much of an expert on Futures or Forex, I would personally go for Stocks. I find them far easier to understand and far more straight forward than either of the other two. When trading stocks, you are trading shares of companies that cost anywhere from a few pounds to hundreds of pounds. There is a fairly limited amount of stock available, and you only have to really be bothered about the company’s ability to turn over a profit. When you are trading Forex (currencies) you have to bear in mind that a country’s currency can and will fluctuate, this makes the whole thing far more complex than only having to consider whether a company is going to make much money in that particular quarter.
Obviously it is entirely up to the individual’s preference, if you are a bit more experienced then maybe Forex or Futures are for you but for amateurs like me I’d stick with Stocks!
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Old Sep 5, 2013, 5:06pm   #21
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. . .There is a fairly limited amount of stock available, and you only have to really be bothered about the company’s ability to turn over a profit. When you are trading Forex (currencies) you have to bear in mind that a country’s currency can and will fluctuate, this makes the whole thing far more complex than only having to consider whether a company is going to make much money in that particular quarter. . .
Hi yellowfloyd,
Reading between the lines of your post, the inference is that if you think a company will make a profit over the next quarter, go long the stock and, if you think it's going to make a loss, then you either step aside or short the stock. Is this correct - did you really mean to infer that?
Tim..
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Old Sep 10, 2013, 5:45pm   #22
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Hi yellowfloyd,
Reading between the lines of your post, the inference is that if you think a company will make a profit over the next quarter, go long the stock and, if you think it's going to make a loss, then you either step aside or short the stock. Is this correct - did you really mean to infer that?
Tim..
Hi Tim,

Basically, yes. I think it’s all about the underlying company rather than price. I believe what I’m buying/selling is tangible.

The FX markets are too quick for me – I need to feel more comfortable with my trading before I embark on that!
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Old Sep 11, 2013, 9:15pm   #23
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Currencies are driven by long-term macro-economic forces and therefore trend.
Stocks prices and driven by speculators speculating and therefore revert to their means frequently.

Trading trends is hardest.
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Old Sep 11, 2013, 10:42pm   #24
 
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Good question - and the most probably useful already was counted by T2W Bots's post #2.

Most are comparing wrong market details. If I'm reading

- forex trading is simple / easy
- you can use leverage and others ...

those are the largest misunderstandings of forex beginners. All free without costs, free trading, free teaching, leverage up to 1:400, not to forget free trading platform, i.e. MetaTrader 4 or 5, those are the well-known marketing arguments of your best friends (the brokers).

Most is wrong: you pay commission, if not, it's included in spread, you use leverage, do you know what it is? Leverage 1:400 means not only you trade 100.000 USD with 250 USD, if you win 25 PIPs, you double your margin, on the other side, if you lose 25 PIPs, you lost 100%.

Forex Trading PROs

- the markets are open 24 hours 5 days, nonetheless there are different times to trade
Frankfurt/London, overlapping with New York means large volume and smooth executions,
Asian session (Singapore, Tokyo) means smaller volume concentrating on JPY and AUD crosses.

- trading fractions of a standard contract (lot) means excellent possibility of money management
even with small accounts.

- Forex trading still is a hype, if you know, how to manage it, you may benefit from this.

Forex Trading CONs

- nearly everyone tells AND shows you, how easy it is - it is not!

- some brokers making a lot of efforts to get you to a long trading-career,
because they earn and live from your commission. A lot of brokers play
other games to get your money faster than only via commissions.

- all is online for free, it's so much, you'll have a problem to select the right sources.

- if you start trading after all (building strategy, trading plan, money management,
using STEM (signal, trigger, exec, manage), you probably get a new knowledge
of your personal mind - it seems whispering you to act contrary to your plan.

Below the line, I think, trading currencies is a good market to put money on the table. If you're acting wrong, you'll lose money in each market, sometimes very slow, sometimes faster. And Forex is the largest and fastest market.

The simplest headline, but hardest to implement, is "Plan your trade and trade your plan". Copyright by I don't remember, you may hear this possibly before, but it's really true. In other words - getting a (forex) trader is starting as trainee. So practise, practise, practise and be disciplined, disciplined, discipleaned (did I mention discipline?).

What you have to invest is time, a lot of time. The environment (demo trading platform, strategies in forums (some working good) and helping seniors will help you as long as you don't think, that you get a quick-rich system by buying a trading-robot from the 'veteran trader, offering only 100 copies of his never losing system for only 99 USD and only the next 3 days'.
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Old Sep 12, 2013, 8:47am   #25
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Originally Posted by yellowfloyd View Post
Basically, yes. I think it’s all about the underlying company rather than price. I believe what I’m buying/selling is tangible.
Hi yellowfloyd,
If you can make this work for you - good on you. However, it flies in the face of conventional T2W wisdom on a number of fronts. That's not necessarily cause for concern, indeed, some might say it's a good thing!


Firstly, earnings for the forthcoming quarter can be calculated using fundamental data which, obviously, is what analysts do to come up with their buy and sell recommendations. Sure, there are surprises, but these tend to be in the form of how much a company underperforms or outperforms the consensus view - as opposed to whether or not it makes a profit or loss.

Secondly, very few companies can withstand the prevailing sector performance and general market sentiment. So, a very strong company with great cash flow, no debt and a full order book can be held back or, even, dragged down by a sector that's struggling. Conversely, a weak company can be artificially buoyed up by a very bullish market that's rising sharply because of geo-political events that have nothing to do with the individual company itself.

On this basis, most T2W members would argue that fundamental analysis is a poor gauge of short term stock price movement. Like I say, if it works for you - then great. Perhaps you'd care to start a thread in the Stocks forum to expand upon your ideas and how you use them to make your trades?
Tim.
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Old Feb 19, 2015, 10:33am   #26
 
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The style of trading employed, financial resources, location and what time of day a person trades (or wants to trade), can all play a role in which markets will be best suited to the individual. Since some of these markets may not be familiar we will look at two common trader groups and how they could implement the use of other markets to improve their trading. It is important to be aware of such alternatives, as they may provide for some fine tuning which can result in better results over the long run.
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Old Feb 21, 2015, 8:24pm   #27
 
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This was written originally in April 2008...I miss those magical days...of the 2008 and 2009 crazy market crash. Everyday would seem like it would have wild swings.
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Old Jun 28, 2015, 8:24am   #28
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Quote:
Originally Posted by timsk View Post
Hi yellowfloyd,
Reading between the lines of your post, the inference is that if you think a company will make a profit over the next quarter, go long the stock and, if you think it's going to make a loss, then you either step aside or short the stock. Is this correct - did you really mean to infer that?
Tim..
totally agree .......but its all about the catalyst / event that reveals this potential to the rest of the market and elevates / dumps the price accordingly

that's the secret ........being just ahead of the crowd

N
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Old Jun 30, 2015, 12:33pm   #29
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Focusing on one or two is one thing every novice trader should do. Hands down.
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Old Jul 2, 2015, 7:47pm   #30
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One should trade, I think, whatever they are comfortable with trading the most. It really depends on the person and their preferences and habits, so I don't think one is better than the other.
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