So, how to they go if you put them head to head against one another.
The image below will show you exactly the comparison.
The warrior on the left would be the Forex market and the one on the right will be the stock market.
That is in terms of the total volume of course because as you might already know, the Forex industry is a 4 trillion dollar industry.
It will dwarf the stock market.
Now, let's head to another question, what would you trade?
In the stock market, you trade (buy/sell) stocks of companies.
There are approximately 4500 listed companies on the new York Stock exchange.
Then, there is another 3500 listed on Nasdaq. Isn't hard to choose which stock to trade?
Will you have the time an energy to monitor so that many stocks.
Well, stock traders monitor everything, they just monitor the ones that they favor on.
But what happens when he losses money?
Does he drop the stock and find a new profitable one? I am not sure of the answer.
As for Forex, traders will trade currency pairs and there are dozens of them to choose from there are 4 major pairs that is traded worldwide.
If you choose to trade that 4 major pairs, wouldn't it be much easier than keeping an eye hundreds or even thousand of stocks?
It is the simplicity of Forex that attracts me because all I have to do is focus on a few pairs.
You would think that there won't be much opportunities to get into the market if you only trade 4 pairs?
You will be wrong.
There will be plenty of chances to enter the market even if you want to trade every single day.
However, I recommend that you don't trade everyday.
Show up at your computer everyday but don't trade everyday. Only trade when you have crystal clear signals presented in front of you.
The thought of needing to trade every day in Forex is one of the biggest mistakes made by most traders out there.
So, now that you know the difference in what is traded in Forex and Stock, which one would you trade?
Well, the answer depends on what you believe... For me, I only trade 2 currency pairs and that's it.
I take 2-3 trades per pair in a week. That is enough for me. :)
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