There are many differences between the two. Are you experienced in either already?
As far as the use of price charts for trading decisions is concerned, the differences are so minor that neither market has a clear advantage, you just need to be aware of making assumptions that what happens in one market will happen the same way in the other.
As far as the use of price charts for trading decisions is concerned, the differences are so minor that neither market has a clear advantage, you just need to be aware of making assumptions that what happens in one market will happen the same way in the other.
very simple reply but full of real information between the difference stock and Forex . thanks for your nice post.
crud-cutter
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AT the Macro level the main difference between the Forex Market and the Stock Indices such as FT100, DAX30, CAC ,S&P500, DJI, NQ etc is that all Stock Market Indices have a long term bias to the upside, but Forex pairs don't.
To a certain extent even individual stocks have a bias to the upside (on aggregate) because of inflation.
For Equity Indices this is multiplied because failing companies stocks drop out of the indices and are replaced by ones whose price is increasing (a form of survival bias).
To a certain extent even individual stocks have a bias to the upside (on aggregate) because of inflation.
For Equity Indices this is multiplied because failing companies stocks drop out of the indices and are replaced by ones whose price is increasing (a form of survival bias).
SoniaBailey
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The largest difference between forex and the stock market is, of course, what you are trading. Forex, or foreign exchange, is a marketplace for the buying and selling of currencies, while the stock market deals in shares – the units of ownership in a company.
Perhaps your post was written in a hurry.
Private retail forex traders are not engaged in buying and selling currency. Actually we are placing bets on whether exchange rates between two currencies will rise or fall, no buying or selling anything occurs.
crud-cutter
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One big advantage of trading Forex rather than Shares is that the underlying 'value' is so much easier to find.
Here is a good (but simple) video from Kathy Lien (whom I respect much more than her trading partner Boris Schlossberg):
Here is a good (but simple) video from Kathy Lien (whom I respect much more than her trading partner Boris Schlossberg):
hatemypips
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Shares offer dividends while profit from FX comes mainly from speculations. It also harder because there are no bubbles in FX (i.e.support from central banks) and the number of factors affecting exchange rates are much greater.
There is an important difference between shares and forex in TA terms. The stock markets have a closed session each night when they are closed. This means that share price charts can show overnight gaps between today's open and yesterday's close. It also means that opening range break-out strategies can be effected. there is no overnight close in forex, so gapping and opening ranges are meaningless.
Atilla
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This question is like what is the difference between a river and a mountain to me?
They are totally different.
Might be more interesting to compare what is their similarity if any?
Farm Yard Forex
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Apples and oranges. One is the value of one currency against another and the other is stake in a business.
HeavLeighGill
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I see that some of the differences between the two have already been explained. Personally, I prefer to invest in forex options.
If your goal is to make small, frequent profits from price movements using short-term strategies, then yes, forex is more profitable than stocks. The forex market is far more volatile than the stock market, where profits can come easily to an experienced and focused trader. Forex trading uses pairs, so the trade depends on the performance of two economies rather than trading a single stock.
Buying and selling currency is not what private retail forex traders do. We simply place bets on the exchange rate between pairs of currencies.
