The Forex market isn’t the only financial arena in the world. You can also make a lot of money with stock trading. And I’m all for it. I invest in stocks, bonds, currency, you name it. I’m all for diversification and making money from every opportunity.
You shouldn’t place all your eggs in one basket and you definitely need to be investing in other market than Forex. Stocks is probably the next best thing for most people.
However, I believe that there are some things which make Forex the best market for you to make your money work for you. I believe there are at least 5 reasons why Forex is better than stocks:
- There are thousands of Stocks in the US stock market alone and there are only 10-20 currencies you ever need to know about in order to trade Forex. Hell, you can have a great income by trading just one or 2 currency pairs. With stocks, you need to learn a lot more data.
- Stocks and companies are influenced by personal changes in management, stock holders identity, power struggles, and so on. Currency value is much less susceptible to personal issues. Of course, a war will make a currency drop, but wars are rare these days.
- Stocks can plummet by 50% or more in a single day. In the Forex market, a change of 1% in the price of a currency pair is considered a big deal. Even though stocks seem less volatile, in truth, Forex is a much stabler market.
- Because stocks are much more influenced by small occurrences and personal changes, they are much harder to trade technically than Forex. Now, some people will not agree with me on this point, but this is my opinion and I stick by it.
- Forex is a global market and is open for 5 days a week all day long. The stock markets have a much more limited trading time. More trading time equals a bigger money making opportunity for you.
Again, I’m not saying that you should quit stock trading. On the contrary. All I’m saying is that Forex is a great opportunity and one which you shouldn’t miss out on.
