Forex trading vs. stock trading: which should investment ...

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Trading Trends in the UK Forex Trading vs Stock Trading vs Share Tra...

Trading Trends in the UK Forex Trading vs Stock Trading vs Share Tra... submitted by racingbarchart to u/racingbarchart [link] [comments]

Forex Trading vs Stocks Trading

Forex Trading vs Stocks Trading submitted by ElliottWaveForecast to ElliottWaveForecast [link] [comments]

Difference between Stock Market and Forex Trading?

Understanding the basics helps a lot in trading! Though Forex trading and Stock market seems to be one and the same regarding investment and online income, there are plenty of practical differences are associated with it. The following blog gives a precise difference between the Forex trading and Stock market. Make the most of it - https://buanaeas.tumblr.com/post/177473936278/forex-trading-vs-stock-trading-which-is-the
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ForexTime FXTM vs Stock Trainer: what's the best forex trading platform?

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ForexTime FXTM vs Stock Trainer: what's the best forex trading platform?

ForexTime FXTM vs Stock Trainer: what's the best forex trading platform? submitted by moneyshouters to u/moneyshouters [link] [comments]

ForexTime FXTM vs Stock Trainer: what's the best forex trading platform?

ForexTime FXTM vs Stock Trainer: what's the best forex trading platform? submitted by moneyshouters to u/moneyshouters [link] [comments]

Recommendation for a beginner: trading stocks vs forex

I want to engage in trading, but I'm not sure where to start or which type of trading is suitable for me.
About me:
  1. Will be starting from scratch, but I'm an eager learner
  2. This will be a side hustle. Can allocate 1-2 hrs per day
  3. Prefers low risk with low reward over high risk with high reward. I'll just diversify later on.
  4. Comfortable with numbers
I'd appreciate any insight. Also, please recommend online resources that can help me get started. Thanks
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Best chart for trading || renko vs candlestick 👉 Intraday, stock market, forex, cryptocurrency 🔥🔥🔥

Best chart for trading || renko vs candlestick 👉 Intraday, stock market, forex, cryptocurrency 🔥🔥🔥 submitted by tradingchanakya to u/tradingchanakya [link] [comments]

Forex vs Day trading stocks

Curious as to why many of you have chosen FX over stocks? Scalping fits my personality and that’s what I have been doing lately. However not overly confident with my knowledge in forex. My question is; can anyone list a comprehensive pros vs cons of FX vs stocks? Unsure what I want to put more time and effort into, as I’d like to devote time to the one which is more so profitable.
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Thoughts on trading forex vs trading stocks.

Curious to know what everyones thoughts are on the differences of trading the two instruments. For me I think Forex is more difficult even tho there’s only 12 major pairs compared to thousands of stocks. I find that stocks follow support and resistance levels more than forex, a lot of the time with forex I find it breaking above or below a support/resistance level then completely reversing. I think forex may be more difficult also because you are going against big banks, etc instead of your average trader with stocks.
Curious to know everyone’s opinion on the topic.
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Forex Vs Stocks Trading Difference: What market is best to trade?

Forex Vs Stocks Trading Difference: What market is best to trade? submitted by jackcarey123 to u/jackcarey123 [link] [comments]

Trading the Stock Market Vs the Forex Market

Trading the Stock Market Vs the Forex Market submitted by Leka213 to CryptocurrencyToday [link] [comments]

Trading the Stock Market Vs the Forex Market

Trading the Stock Market Vs the Forex Market submitted by ososru to Bitcoin4free [link] [comments]

Trading the Stock Market Vs the Forex Market

Trading the Stock Market Vs the Forex Market submitted by Rufflenator to 3bitcoins [link] [comments]

Trading the Stock Market Vs the Forex Market

Trading the Stock Market Vs the Forex Market submitted by Hellterskelt to bitcoin_is_dead [link] [comments]

Day trade US stocks vs forex

Ideally I want to trade stocks as from my research it seems you can just jump in and out of trades within a few minutes and take profit. You can do a few minutes of TA and then enter, wait, and take profit. I have done this with success on a paper money account. However I cannot trade during the lucrative market times due to other commitments.
With forex being 24/5, it's my second option. With forex it seems that you need to know about the economic climate and all that. I just want to use TA when trading.
Is this approach profitable? - In terms of just focusing on TA and taking very short term intraday trades, similar to stock trading?
Thank you for any insight.
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binary options on stocks. why binary tree , binary is base what , binary or forex , binary vs ternary ,are binary options legal , how binary options work , why trade binary ,binary options no deposit bonus

binary options on stocks. why binary tree , binary is base what , binary or forex , binary vs ternary ,are binary options legal , how binary options work , why trade binary ,binary options no deposit bonus submitted by Binaryopts to u/Binaryopts [link] [comments]

USA Stock trading vs. Forex Trading (your opinion)

What's your opinion on those two fields?
I personally hate the stock market because i think it's barbaric to charge a commission on top of a spread, and not to mention they don't allow leverage...so to actually make a descent set of money, you'll have to start off with a very high capital.
Another thing that i really hate is that the market closes everyday and it could open the next day with a HUGE gap. Every time that happens i pretty much lost my opportunity enter the trade to catch that big drop or rise.
One thing that I DO like about the stock market is the fact that it moves a lot more in total percent wise, but like i said before, without leverage you're pretty much going to rely on having a large capital.
Would like to hear more opinions.
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forex vs stock trading

forex vs stock trading submitted by soloforexprojects to Trading [link] [comments]

Opinions and Discussion on Trading Stocks vs Forex vs Options

So I intend to trade part time in my gap year before medical school and I have dove pretty deep into stocks and forex in terms of reading and comprehension since early July. I have an account with robinhood ($500) and been messing around occasionally with various winning and losing strategies, messing with charts on tradingview, and am currently paper trading options on stocks with Optionshouse.
The one thing I hate about the stock market is how many stocks there are, and my mind keeps coming up with random strategies and ideas that are made more convoluted when you consider the share volume of stocks and ETF's. Yes I know, keep a small watchlist, etc, and I have done this I'm not a straight scrub/newbie. Paper trading options (only liquid ones) is going pretty well, though I still need a lot more practice. The problem is these options are still on stocks.
I have also paper traded forex and since there are far less pairs, it makes it easier to focus. 24/7 is nice too. I just want to hear opinions on either side.
I am under no illusions and am well aware I'm not going to be a millionaire in a year. Regardless of what I trade, the goal is to build a small account. I don't really intend to add or remove any money from the account for at least a year after I start.
When I open a full account it would likely be with $2500-$3000 to start. For forex don't bother trying to educate me on the risks I've read up on all of them. I am only taking 4 credits next semester so I should have plenty of time for everything.
Income: SI Leader for a few classes at my university, research, Tutoring, I have several hundred dollars of disposable income a month.
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Former investment bank FX trader: Risk management part 3/3

Former investment bank FX trader: Risk management part 3/3
Welcome to the third and final part of this chapter.
Thank you all for the 100s of comments and upvotes - maybe this post will take us above 1,000 for this topic!
Keep any feedback or questions coming in the replies below.
Before you read this note, please start with Part I and then Part II so it hangs together and makes sense.
Part III
  • Squeezes and other risks
  • Market positioning
  • Bet correlation
  • Crap trades, timeouts and monthly limits

Squeezes and other risks

We are going to cover three common risks that traders face: events; squeezes, asymmetric bets.

Events

Economic releases can cause large short-term volatility. The most famous is Non Farm Payrolls, which is the most widely watched measure of US employment levels and affects the price of many instruments.On an NFP announcement currencies like EURUSD might jump (or drop) 100 pips no problem.
This is fine and there are trading strategies that one may employ around this but the key thing is to be aware of these releases.You can find economic calendars all over the internet - including on this site - and you need only check if there are any major releases each day or week.
For example, if you are trading off some intraday chart and scalping a few pips here and there it would be highly sensible to go into a known data release flat as it is pure coin-toss and not the reason for your trading. It only takes five minutes each day to plan for the day ahead so do not get caught out by this. Many retail traders get stopped out on such events when price volatility is at its peak.

Squeezes

Short squeezes bring a lot of danger and perhaps some opportunity.
The story of VW and Porsche is the best short squeeze ever. Throughout these articles we've used FX examples wherever possible but in this one instance the concept (which is also highly relevant in FX) is best illustrated with an historical lesson from a different asset class.
A short squeeze is when a participant ends up in a short position they are forced to cover. Especially when the rest of the market knows that this participant can be bullied into stopping out at terrible levels, provided the market can briefly drive the price into their pain zone.

There's a reason for the car, don't worry
Hedge funds had been shorting VW stock. However the amount of VW stock available to buy in the open market was actually quite limited. The local government owned a chunk and Porsche itself had bought and locked away around 30%. Neither of these would sell to the hedge-funds so a good amount of the stock was un-buyable at any price.
If you sell or short a stock you must be prepared to buy it back to go flat at some point.
To cut a long story short, Porsche bought a lot of call options on VW stock. These options gave them the right to purchase VW stock from banks at slightly above market price.
Eventually the banks who had sold these options realised there was no VW stock to go out and buy since the German government wouldn’t sell its allocation and Porsche wouldn’t either. If Porsche called in the options the banks were in trouble.
Porsche called in the options which forced the shorts to buy stock - at whatever price they could get it.
The price squeezed higher as those that were short got massively squeezed and stopped out. For one brief moment in 2008, VW was the world’s most valuable company. Shorts were burned hard.

Incredible event
Porsche apparently made $11.5 billion on the trade. The BBC described Porsche as “a hedge fund with a carmaker attached.”
If this all seems exotic then know that the same thing happens in FX all the time. If everyone in the market is talking about a key level in EURUSD being 1.2050 then you can bet the market will try to push through 1.2050 just to take out any short stops at that level. Whether it then rallies higher or fails and trades back lower is a different matter entirely.
This brings us on to the matter of crowded trades. We will look at positioning in more detail in the next section. Crowded trades are dangerous for PNL. If everyone believes EURUSD is going down and has already sold EURUSD then you run the risk of a short squeeze.
For additional selling to take place you need a very good reason for people to add to their position whereas a move in the other direction could force mass buying to cover their shorts.
A trading mentor when I worked at the investment bank once advised me:
Always think about which move would cause the maximum people the maximum pain. That move is precisely what you should be watching out for at all times.

Asymmetric losses

Also known as picking up pennies in front of a steamroller. This risk has caught out many a retail trader. Sometimes it is referred to as a "negative skew" strategy.
Ideally what you are looking for is asymmetric risk trade set-ups: that is where the downside is clearly defined and smaller than the upside. What you want to avoid is the opposite.
A famous example of this going wrong was the Swiss National Bank de-peg in 2012.
The Swiss National Bank had said they would defend the price of EURCHF so that it did not go below 1.2. Many people believed it could never go below 1.2 due to this. Many retail traders therefore opted for a strategy that some describe as ‘picking up pennies in front of a steam-roller’.
They would would buy EURCHF above the peg level and hope for a tiny rally of several pips before selling them back and keep doing this repeatedly. Often they were highly leveraged at 100:1 so that they could amplify the profit of the tiny 5-10 pip rally.
Then this happened.

Something that changed FX markets forever
The SNB suddenly did the unthinkable. They stopped defending the price. CHF jumped and so EURCHF (the number of CHF per 1 EUR) dropped to new lows very fast. Clearly, this trade had horrific risk : reward asymmetry: you risked 30% to make 0.05%.
Other strategies like naively selling options have the same result. You win a small amount of money each day and then spectacularly blow up at some point down the line.

Market positioning

We have talked about short squeezes. But how do you know what the market position is? And should you care?
Let’s start with the first. You should definitely care.
Let’s imagine the entire market is exceptionally long EURUSD and positioning reaches extreme levels. This makes EURUSD very vulnerable.
To keep the price going higher EURUSD needs to attract fresh buy orders. If everyone is already long and has no room to add, what can incentivise people to keep buying? The news flow might be good. They may believe EURUSD goes higher. But they have already bought and have their maximum position on.
On the flip side, if there’s an unexpected event and EURUSD gaps lower you will have the entire market trying to exit the position at the same time. Like a herd of cows running through a single doorway. Messy.
We are going to look at this in more detail in a later chapter, where we discuss ‘carry’ trades. For now this TRYJPY chart might provide some idea of what a rush to the exits of a crowded position looks like.

A carry trade position clear-out in action
Knowing if the market is currently at extreme levels of long or short can therefore be helpful.
The CFTC makes available a weekly report, which details the overall positions of speculative traders “Non Commercial Traders” in some of the major futures products. This includes futures tied to deliverable FX pairs such as EURUSD as well as products such as gold. The report is called “CFTC Commitments of Traders” ("COT").
This is a great benchmark. It is far more representative of the overall market than the proprietary ones offered by retail brokers as it covers a far larger cross-section of the institutional market.
Generally market participants will not pay a lot of attention to commercial hedgers, which are also detailed in the report. This data is worth tracking but these folks are simply hedging real-world transactions rather than speculating so their activity is far less revealing and far more noisy.
You can find the data online for free and download it directly here.

Raw format is kinda hard to work with

However, many websites will chart this for you free of charge and you may find it more convenient to look at it that way. Just google “CFTC positioning charts”.

But you can easily get visualisations
You can visually spot extreme positioning. It is extremely powerful.
Bear in mind the reports come out Friday afternoon US time and the report is a snapshot up to the prior Tuesday. That means it is a lagged report - by the time it is released it is a few days out of date. For longer term trades where you hold positions for weeks this is of course still pretty helpful information.
As well as the absolute level (is the speculative market net long or short) you can also use this to pick up on changes in positioning.
For example if bad news comes out how much does the net short increase? If good news comes out, the market may remain net short but how much did they buy back?
A lot of traders ask themselves “Does the market have this trade on?” The positioning data is a good method for answering this. It provides a good finger on the pulse of the wider market sentiment and activity.
For example you might say: “There was lots of noise about the good employment numbers in the US. However, there wasn’t actually a lot of position change on the back of it. Maybe everyone who wants to buy already has. What would happen now if bad news came out?”
In general traders will be wary of entering a crowded position because it will be hard to attract additional buyers or sellers and there could be an aggressive exit.
If you want to enter a trade that is showing extreme levels of positioning you must think carefully about this dynamic.

Bet correlation

Retail traders often drastically underestimate how correlated their bets are.
Through bitter experience, I have learned that a mistake in position correlation is the root of some of the most serious problems in trading. If you have eight highly correlated positions, then you are really trading one position that is eight times as large.
Bruce Kovner of hedge fund, Caxton Associates
For example, if you are trading a bunch of pairs against the USD you will end up with a simply huge USD exposure. A single USD-trigger can ruin all your bets. Your ideal scenario — and it isn’t always possible — would be to have a highly diversified portfolio of bets that do not move in tandem.
Look at this chart. Inverted USD index (DXY) is green. AUDUSD is orange. EURUSD is blue.

Chart from TradingView
So the whole thing is just one big USD trade! If you are long AUDUSD, long EURUSD, and short DXY you have three anti USD bets that are all likely to work or fail together.
The more diversified your portfolio of bets are, the more risk you can take on each.
There’s a really good video, explaining the benefits of diversification from Ray Dalio.
A systematic fund with access to an investable universe of 10,000 instruments has more opportunity to make a better risk-adjusted return than a trader who only focuses on three symbols. Diversification really is the closest thing to a free lunch in finance.
But let’s be pragmatic and realistic. Human retail traders don’t have capacity to run even one hundred bets at a time. More realistic would be an average of 2-3 trades on simultaneously. So what can be done?
For example:
  • You might diversify across time horizons by having a mix of short-term and long-term trades.
  • You might diversify across asset classes - trading some FX but also crypto and equities.
  • You might diversify your trade generation approach so you are not relying on the same indicators or drivers on each trade.
  • You might diversify your exposure to the market regime by having some trades that assume a trend will continue (momentum) and some that assume we will be range-bound (carry).
And so on. Basically you want to scan your portfolio of trades and make sure you are not putting all your eggs in one basket. If some trades underperform others will perform - assuming the bets are not correlated - and that way you can ensure your overall portfolio takes less risk per unit of return.
The key thing is to start thinking about a portfolio of bets and what each new trade offers to your existing portfolio of risk. Will it diversify or amplify a current exposure?

Crap trades, timeouts and monthly limits

One common mistake is to get bored and restless and put on crap trades. This just means trades in which you have low conviction.
It is perfectly fine not to trade. If you feel like you do not understand the market at a particular point, simply choose not to trade.
Flat is a position.
Do not waste your bullets on rubbish trades. Only enter a trade when you have carefully considered it from all angles and feel good about the risk. This will make it far easier to hold onto the trade if it moves against you at any point. You actually believe in it.
Equally, you need to set monthly limits. A standard limit might be a 10% account balance stop per month. At that point you close all your positions immediately and stop trading till next month.

Be strict with yourself and walk away
Let’s assume you started the year with $100k and made 5% in January so enter Feb with $105k balance. Your stop is therefore 10% of $105k or $10.5k . If your account balance dips to $94.5k ($105k-$10.5k) then you stop yourself out and don’t resume trading till March the first.
Having monthly calendar breaks is nice for another reason. Say you made a load of money in January. You don’t want to start February feeling you are up 5% or it is too tempting to avoid trading all month and protect the existing win. Each month and each year should feel like a clean slate and an independent period.
Everyone has trading slumps. It is perfectly normal. It will definitely happen to you at some stage. The trick is to take a break and refocus. Conserve your capital by not trading a lot whilst you are on a losing streak. This period will be much harder for you emotionally and you’ll end up making suboptimal decisions. An enforced break will help you see the bigger picture.
Put in place a process before you start trading and then it’ll be easy to follow and will feel much less emotional. Remember: the market doesn’t care if you win or lose, it is nothing personal.
When your head has cooled and you feel calm you return the next month and begin the task of building back your account balance.

That's a wrap on risk management

Thanks for taking time to read this three-part chapter on risk management. I hope you enjoyed it. Do comment in the replies if you have any questions or feedback.
Remember: the most important part of trading is not making money. It is not losing money. Always start with that principle. I hope these three notes have provided some food for thought on how you might approach risk management and are of practical use to you when trading. Avoiding mistakes is not a sexy tagline but it is an effective and reliable way to improve results.
Next up I will be writing about an exciting topic I think many traders should look at rather differently: news trading. Please follow on here to receive notifications and the broad outline is below.
News Trading Part I
  • Introduction
  • Why use the economic calendar
  • Reading the economic calendar
  • Knowing what's priced in
  • Surveys
  • Interest rates
  • First order thinking vs second order thinking
News Trading Part II
  • Preparing for quantitative and qualitative releases
  • Data surprise index
  • Using recent events to predict future reactions
  • Buy the rumour, sell the fact
  • The mysterious 'position trim' effect
  • Reversals
  • Some key FX releases
***

Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
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Forex vs stock market

Forex vs stock market
This is meant as a discussion. Which is generally more profitable for day trading. Pros and cons of both. Etc I know this is very complicated but I wanna start day trading and I don’t know which I wanna do. I’m 19 and I’m college college and I like analytics.
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Forex Trading VS Stock Market Investing Comparison ... Forex vs Stocks -- Why Choose? - YouTube Biggest difference between FOREX & STOCKS??  Pros & Cons ... Which is Better? Forex or Stock Trading? ⚖️ - YouTube

Forex Trading vs Stock Trading The Bottom Line. Ultimately you’ll need to weigh the pros and cons of each market to decide which path is ideal for your personality, skills, and style. But if you’re a self-motivated, not afraid of volatility, short term preferred type of trader, the forex market might just be right for you. Whichever market you choose to jump into, just make sure you stick ... Forex vs. Stock Trading. Share Pin Email ••• narvikk / Getty Images. By. Full Bio. Follow Linkedin. Follow Twitter. John Russell is a former writer for The Balance and an experienced web developer with over 20 years of experience. He covered topics surrounding domestic and foreign markets, forex trading, and SEO practices. Read The Balance's editorial policies. John Russell. Updated May ... Let’s start our Forex vs equities battle! Forex trading or stock trading: a comparison. 1 – Trading times and open market hours. One of the most important differences between stock and Forex trading relates to the trading hours of the markets. Forex is an OTC (over-the-counter) market, which means that currencies can be traded around the ... The stock price moves steadily, the trading signals are clear and the noise is much lower than the other parts of the day. When you trade indices, you use the same concept. If you are trading DAX, the German index, then you should trade it during the London session. The best time to trade DAX is right at the London session open, during the first 1-2 hours. If you are trading Dow Jones or S ... Stock Trading vs. Forex Trading. Apr 2, 2019 Day Trading, Stock Market, Trading Strategy. Stock trading and foreign exchange, or “forex” trading, are similar in that they depend on taking advantage of constantly changing prices – but that’s where the similarities largely end. Understanding the differences between forex and stock trading can help you to decide whether one type of ... Stock trading in almost all developed countries are regulated by strict investor protection laws. Cryptocurrency trading is completely unregulated, and most of them operate freely from any country ... Forex major pairs typically have extremely low spreads and transactions costs when compared to stocks and this is one of the major advantages of trading the forex market versus trading the stock ... Deciding whether to invest in the foreign exchange markets (forex) or stocks/stock indexes depends on he trader's or investor's risk tolerance and trading style. Forex trading does not offer this. Stock trading is limited to exchange hours On the downside, you can only trade stock when that particular exchange is open – the NYSE, for example, is open 9:30 a.m. to 4 p.m. Eastern Time. If you want to trade on your own but have a day job, you might not be able to schedule time to make trades. Forex trading features. You can trade 24/7 The forex market ... Is Trading Stocks better than Forex? Traders use information from the forex vs stocks trading relationship to determine the market they wish to trade. Even though they are interconnected, forex & stock-market are very different. The forex market has unique features that make it stand out from the other markets.

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