Forex or stocks, which one is more risky -
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thread: Forex or stocks, which one is more risky

  1. #11
    Member Cerpa's Avatar
    38
    People say Currency Market is tougher to trade than stocks. I have just traded Currency Market so I can not compare them. In a sense Currency Market is riskier because you have leverage. Leverage in Currency Market can be anywhere from 20:1 up to 400:1. Trading stocks you can trade on margin with what, 2:1 leverage? Using leverage is a great way to construct wealth, but it can be dangerous becuase it magnifies both profits and losses.

  2. #12
    I am new to Forex, however I state Stocks, by far, are riskier. And the reward is smaller as well. Sure, stocks were all the rage during the dot-com boom, however if you're an average Joe, with a little pot to play, it is gont require you a WHILE for you to get rich today (it is mostly a bear market from the stock market at this time.)

    These are the things that I don't enjoy about the stock market:


    1. The dreaded gap. A buddy of mine had 6k in a stock one day, then he awakened in the morning, right when the market opened, and his inventory was at 4k. Why? All because the firm he spent in had any type of scandal come to light right after the market closed, and the following morning...BOOM, the dreaded stop gap was in his door. Nothing you can do about that.

    2. The only stocks that can really be on par with all the gains of the Forex, are penny stocks. And penny stocks are similar to a 3rd world market, filled with corruption, deceit and theives. Boiler rooms work day and night to pump up stocks simply to dump them in their advantage. And nine out of ten penny stock companies are scammers.

    3. If you think you're gont get and out of inventory trades like you can with currency pairs, forget about it. SEC rules say that with a typical cash account, the buyer and seller of a stock must wait three business days before he can buy a new inventory (allegedly so the company can repay...)

    4. The sole way that the little guy can really make Forex-like yields on the stock market is whether he Day Trades. And you want at least 25k to start up a Day Trading account! Compare $25,000 with the $250.00 minimum that you're able to open up a Forex account with, now which one is riskier? (And 90% of new Day Traders wind up losing their money, just as fast as a percentage90 of those new Forex traders do.)

    5. The stocks that have the capacity for the biggest gains have the poorest liquidity. By way of instance, I bought a penny stock once, and it took me nearly TWO WEEKS to escape it! Imagine having your money locked in a currency pair for this long, and not knowing what's going to happen for this! Today that's risky! Doesn't matter when you have a Stop-loss order on it or not, cause there is nobody AROUND TO BUY IT!

    6. Taxes. You pay more taxes on stocks than you do with the Forex. This further reduces your gains.

    I am not hoping to OVER-demonize the stock market, because it can still be VERY rewarding (Hell, about a month ago, I bought this revolutionary-stem-cell research company's inventory, and that I nearly tripled my money in less than 24 hours.) As for me, I will never write off the stock market, but it will be my main forte from here on out. People discuss the leverage from the Forex being risky, however so much as I see it, leverage is exactly what you make of it. Leverage isn't some Boiler Room Scam working against youpersonally, nor is it some Enron-style corruption. Saying the Forex is highly risky, because of the high Leverage, is similar to looking at your vehicle and stating it is risky because it can go 160 mph. You don't need to go that fast. . .and in the event that you decided to. . .do it on a safe highway. . .when that the cops aint around.

  3. #13
    Junior Member LauraLiepkr's Avatar
    16
    Remember that you can trade stocks with leverage utilizing warrants or CFDs...
    so that you can become rich very quickly if you're at the ideal side of this market. I think that the risk is similar, and also the technique to attain wealth also.
    For me that´s all about discipline and a fantastic egy.

    The conventional investment in stocks may also be interpreted as a long-term investment, soin that way the risk is reduced,because the fundamentals can play a significant part in my own opinion.


    PS: English isn't my native language,so my article can contain mistakes...

  4. #14
    Junior Member Peybol39's Avatar
    12
    I want to ask? When thinking of a trading site for Forex what tool and enstruments do I really need. What quality standars are there to really go by?



    It is about moment you are buying. On forex you can profit both on decreasing or increasing movement. Forex is much more corrective (retracement) market. Forex has leverage influence. You can win with hard work very much, but using litlle less functioning you can loss a fortune. In stock you must devote much many to have many, it is another filosofy compared to forex. But in all honesty poeple are perhaps losing the most on forex market, becouse of revenue it indie (do you think it is paradox?) . Forex is fast way in the two directions, in stock you have only one way....

  5. #15
    hello everyone, am a newbie still in studying and out of curiousity, I would love to know which is much more risky, Currency Market or stocks
    Al kind of financial markets has exactly the same level of risk. It doesn't matter if you trade stock, commodities or currencies. If you create the trading gaming, you will lose your money either way. Some will say that Currency Market is more risky because of the high leverage you can use, however I disagree with this since it's up to exactly what leverage you utilize. Besides, the volatility in the stock markets is a lot larger that the Currency Market market so that it definitely not safer...

  6. #16
    Junior Member ragomi's Avatar
    16
    Guys, do you know a fantastic penny stocks broker ? I live in Romania !

  7. #17
    hi everybody, am a newbie still in learning and out of curiousity, I would love to know that's more risky, Currency Market or shares
    Trading with no proper understanding is always risky, whatever trading sector you're using that doesn't mean much! However, I look, Forex trading is significantly elastic compared to stocks, as it's open for 24 hours and very low trading cost too.

  8. #18
    Junior Member paitu_96's Avatar
    28
    hi everybody, am a newbie still in learning out of curiousity, I would like to know that is more risky, Foreign Exchange or shares
    Not excellent question. Risk is everywhere, you can't avoid risk in Stock as well Forex . If you interested about Forex trading, then please go first of all about learning Fx at Babypips college and can practice a demo account at any broker , devoid of authentic trading principle Forex may be dangerous . Always remember 90 percent are loser in Fx . so rorex is risky or not ? This question seems not good actually

  9. #19
    Junior Member michel-28's Avatar
    20
    Please do not discourage someone concerning this market place. Forex always comprises great risk and there is every 2nd uncertain, but if you're able to observe some inevitable part of trading with patience then it can be a trusted source to earn money very rapidly. So, choice is your.

  10. #20
    Each one of the trading sectors are risky without enough knowledge and skill! I am not going to compare Forex with all the stock market, because Forex is not the same field! But without knowledge, nothing is potential here!

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