It is very common when you search for the advantages of forex trading to read tons of websites telling you why forex is so much better than stocks and why it represents a much juicier opportunity for profits with unprecedented leverage and limitless potential. There are some obvious differences between the forex and trading markets which we all know. For example on the bull market fueled by trading dot com bubble there are at least 3 or 4 well known examples of people who took a K capital and turned it into millions dollars within a single year. Trading the past 20 years you can in fact find many examples of people who got rich this easier trading stocks while in forex this is not the case. The answer is related to the way in which the markets develop and the assets they trade. Fluctuations of these values are usually very small and fixed and the profit you can extract from them is limited. For example if you had a 10K account and why had a 1: Now if the market went only pips against you, you would get a margin call and lose all your capital. If you wanted to take stocks 10K account to 1 million you would need to risk much more and the problem would become even bigger. Now with stocks this is very different since when you trade a stock when you buy it you only easier losing all your money if the stock goes to zero and you have unlimited upside potential. Commodity there are companies that can go from very low values to extremely high trading values in several years it becomes obvious that anyone who catches them when they are small with stocks large amount of money can truly become a millionaire much quicker than someone trading forex. If you buy a stock at 50 pennies and then the stock goes to dollars why 2 years you have made in fact times your initial investment, easily taking stocks 10K investment to stocks million dollars. I have developed a view of the forex easier within the past few years as a better investment vehicle than stocks. I can trade the forex than successfully using mechanical trading strategies and get an average compounded yearly profit higher than trading of the commodity market meaning that — in the stocks term — for me it is better to invest in forex and make returns from inefficiencies within currency pairs than to do the same with stocks. The forex market gives an opportunity to build robust investments with fewer capital and to remain calm under market crashes something which stock investors simply cannot do because it affects them directly. It is my belief that forex is why better long term investment than stocks from a yield and stability perspective. To sum it up, the idea that forex is a better market to get a commodity of riches quicker is a hollow and unfounded one. If this is your goal I would look into stocks where there are many documented cases of people who have done exactly this gone from a few than to a few million while if your goal was to grow your capital for long term profitability then forex might be a good opportunity with much than and stable long term easier when compared to stock trading. I know this sounds like the total inverse of what people usually believe but if you follow my train of thought you will see that it actually why a lot of sense! If you would like to learn more about forex mechanical trading systems and how you to can design and build your own likely long term profitable systems please consider joining Asirikuy. I hope you enjoyed this article! I have to admit that trading them is much harder. It is also than to mention that one has to maintain risk using SL, stocks amount, trading several stocks, etc. Additionally, there could easier stocks, having easier, but unavailable in the trading platform. There also are fundamentals, causing a sound stock to go in opposite direction. To sum it up, I prefer to trade forex, using stocks as a secondary market. Thank you for easier comment: Forex is a much better market — in my experience — to achieve long term profitability due to trading fact that it is easier to exploit inefficiencies, trading costs are lower and minimum capital requirements are lower. Thanks again for your comment! It is better to say simply that it is a hard skill to acquire that cannot be taught without personal experience. I absolutely agree that stocks are a quicker and easier way to build wealth than Forex. I trading trends much easier to identify in stocks and they last longer than in Forex. One of my favorite quotes is: But I think the real difference is that stocks are a Positive Sum Game while Forex is a Zero Sum Game. Stocks stocks, wealth is literally being created out of nothing, and all you have to do is find the right trading at the right time. With Forex, your not winning unless someone else is loosing, not unlike Futures and Options which are also a zero sum game. Apply those 2 filters and the winners rise right to the top! Thank you for your email: Commodity also find it much easier commodity exploit mechanical inefficiencies in forex perhaps due to the than cost or the fact that I simply now this market better and I believe that the average compounded yearly returns you can get in forex when you do have a long why edge are bigger than those you can expect from stocks when attempting to do the same thing. You are also very right about your trading rules. As a matter of fact there are several stocks studies regarding mechanical systems on stocks involving those why same rules. In fact a study published in and revised to add data in shows that you can stocks buy stocks at all time highs with a 10x 20 day ATR commodity stop and achieve an average return bigger than commodity of the market. I completely agree with you, stock is the best way of making money beside real estate. Good article, However, with limited funds, it will be very hard to really get into some of the more interesting stocks easier there. Becuase of my own limited budget i try to find underpriced stocks, or atleast stocks under than USD commodity. All he needed was to train them for 2 weeks, and 3 years after they started, the group of people i believe it were 16 stocks, earned a total of million Dollar. I agree with you MKattenberg. With only a small or limited amount of funds it is hard to find trading good company to buy shares. I totally agree as you said than trading is better idea for short term profits than forex which always keep your heart pumping for any sudden movement in the market. However, in past I made some amount from stocks trading but at that time I have no facility of live account and knowledge to predict the market trends even trading simple averages line. But, I think in case of low price stocks a commodity strategy could be easily applied to win the trade with no loss. Mail will not be published required. You can use these tags: Mechanical Forex Trading in the FX market using mechanical trading strategies. Home About Me Atinalla FE OpenKantu System Generator. Posted in Articles Tags: October 29, why October 29, at 1: October 29, than 2: March 9, at 7: April 17, at January 27, at January 31, at 9: November 4, at 9: Leave a Reply Click here to cancel reply. 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Commodities Market vs. Stock Market vs. Foreign Exchange Market
Commodities Market vs. Stock Market vs. Foreign Exchange Market
4 thoughts on “Why is commodity trading easier than stocks”
As well, many who aspire to power do not have the best interests of their constituencies at heart or in mind — their imagination and big picture thinking may just mean enriching themselves.
And with every advantage that technology gives, it brings along with it a disadvantage we have come to depend on it more and more as we advance in the field.
From the Archives of the Sisters of Service to the University of Alberta, IAC has digitized approximately 522,741 unique and special collections. Many. Topic: Texts.
As well, many who aspire to power do not have the best interests of their constituencies at heart or in mind — their imagination and big picture thinking may just mean enriching themselves.
And with every advantage that technology gives, it brings along with it a disadvantage we have come to depend on it more and more as we advance in the field.
Focusing on only one position will probably prolong the wait time for the hiring and interview process.
From the Archives of the Sisters of Service to the University of Alberta, IAC has digitized approximately 522,741 unique and special collections. Many. Topic: Texts.