Stocks VS Forex

[beezerlm]

Hi There. I was just wondering what the advantage to trading forex is compared to stocks on the S&P? Is there more volatility? Is it more predictable? Thanks for the help.

 

[Rhody Trader]

There is actually less raw volatility in forex than individual stocks, but there is more leverage in forex trading which can mean that forex trading is more volatile.

Forex offers two significant advantages over stocks. One is that you can legitimately trade 24 hours with liquidity. The other is that in some cases it's easier for very low capitalized traders can more readily trade forex than stocks because of the structure of trade sizing and costs.

Don't even think about one market being more or less "predictable". It will take you down a bad road.

 

[beezerlm]

Thanks,
Can you recomend a simple trading platform and strategy for a beginer in Forex? I would just like to get my feet wet. I have accumulated some savings and I would love to learn to earn 10%-20% annually. Not looking for get rich quick, just solid returns.

 

[Rossini]

Give fxcm's new SB account a go. I think they are more likely to treat you better than the usual suspects. 10-20% annually is better than a negative % but is a rather unambitious return (unless you are managing billions)

 

[beezerlm]

Just trying to be realistic.

 

[Rhody Trader]

Give fxcm's new SB account a go.

He's in the U.S. No spreadbetting. Gotta do the real trading thing. :cheesy:

 

[Rhody Trader]

Can you recomend a simple trading platform and strategy for a beginer in Forex?

Oanda is a very good platform for new traders as they have no minimum account or trade size and unlimited demo platform usability.

As for a strategy, that one you're going to have to figure out for yourself. I don't have nearly enough information to even start to make suggestions there.

 

[beezerlm]

Thanks RT.
Are there any indicators perfered by forex traders or is price action the leading method?

 

[Rhody Trader]

There are loads of preferred indicators among forex traders and plenty of folks who don't use them at all. It's not about this works and this doesn't but rather this works for me and this doesn't work for me.

 

[Stu0898]

Thanks RT.
Are there any indicators perfered by forex traders or is price action the leading method?

Hi Beezerlm and welcome to the forum.

Before investing any of your savings you need to research thoroughly. Forex is an exciting place to trade but so many first timers get swept away with the idea of making money and loose big time.

As you start to research you will see bundles of programs offerring automatic trading robots that will make you $$$. Please be very careful about these and research them well before putting up any money to buy one and always demo trade them first if you do take the plunge, be aware there are many 'Expert Advisors' or EAs freely available on the net and these can be found if you look for them.

You can pick up a demo trading account from loads of brokers, many use the MetaTrader platform (this is what the previously mentioned EAs run on) which comes absolutely free and is a very powerful technical analysis tool for the price (free!). Just Google the following: Orion, FXPro or Vinson for starters and see what you can do with Metatrader and a demo trading account.

Remember many people rush into trading Forex and loose thousands of dollars, I hope you're not one of them. Don't get me wrong, I am not trying to discourage you, trading can be a very exciting and rewarding way of earning a return on your investment or earning a living.

Good trading


Stu0898

 

[dearly325]

Daytrading forex is VERY volatile and you can lose your money pretty quickly - as most do. You can open an account with very little money because they figure you'll just lose it anyway. Swing trading forex by betting on a trend is also pretty risky. If you are a gambler then, by all means, go for it. If you're not a gambler then stay away from forex trading.

 

[Rhody Trader]

Forex traders use a wide array of methods and techniques.

 

[lowmach]

do not limit your trading to any one vehicle. imho.

wait for a signal that gives you a high probability of winning and then trade. sounds so easy, but it is not. the patient ones make a living and the gamblers do not.

 

[lancenicolase]

Forex is currency trading, whereas dealing stocks you actually buy a share of a company. Usually forex is more volatile as you trade on margin (about 1000:1) and thus even small movement makes huge difference.

 

[N Rothschild]

why do newbies always start on forex? imo forex is one of the hardest markets..your not just thinking about traders and investors, but hedging, international trade etc etc..total mine field if you ask me!