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Forex trading or Stock trading? Which is better?

reygie · 99 · 29034

reygie

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Can anyone share his experience with regards to online trading on the internet? Which is better to manage or make profit? Forex or Stock Trading? Which is more riskier? Which is more safer investment or how would you compare the two systems?


part_timer_lang

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Reply #1 on: Jul 30, 2006, 10:25 PM
Baka meron ng makakasagot sa katanungang ito  :confused:



greenman

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Reply #2 on: Jul 31, 2006, 09:40 PM
Let me try to answer. IMHO. With my experience on online ivesting.
Stocks are more better than any other. It just more of your own diskarte.
Stocks are better than forex; because loss are marginable and can be manage.
It is also better than HYIP or autosurf; dahil siguradong hindi scam.
You can help the economy. You become more aware of the world.
Just make a plan and watch the stock market daily.
Have a short, medium and long term goal.
Try to speak to people with the same interest.

That's all.



sam_1_els

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Reply #3 on: Aug 01, 2006, 01:08 AM
Stocks
Before we describe what are the benefits of FOREX, lets remember what are Stocks. Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company. Basically speaking, when you buy stocks you invest in the company and in the market it is working in.

Hence, when the company does well and makes a profit, the value of the stocks rise and you can sell your shares for a profit or hold on to the stock for even more gain in the future. Sometimes companies will issue dividends – part of the profits that are distributed to share holders, another way for you to make a profit.

Stocks are traded on Stock exchanges. Most stocks are bought and sold through brokers (agents) who charge a commission or fee for this service.

Stocks were traditionally seen as long-term investments. So-called 'blue chip' stocks - those having proven value over many years - may form the backbone of an investment portfolio. Short-term traders (Day traders) exist, but it is a relatively new phenomenon made possible with the advent of Internet trading. Day traders attempt to take advantage of large daily fluctuations in the market by buying and selling many times in one trading period. It is relatively risky and broker commissions charged on each transaction reduce any profits realized.

FOREX
The Foreign Exchange Market (FOREX) is quite different from the stock exchange. In contrast to the stock exchange, the FOREX is primarily a short-term market. Most traders enter and exit deals within a 24-hour period – sometimes within a few minutes. Many FOREX trades can be made in one day without building up a large brokerage fee; hence, you keep all of your profit. Brokers earn money by setting a spread – the difference between asking and selling prices.

FOREX is the largest financial market in the world. It is handles transactions worth $1.5 trillion every day ($1,500,000,000,000). By comparison, all the American stock exchanges combined handle daily transactions worth about $100 billion ($100,000,000,000), 15 times smaller than FOREX. It is not located in any one location, but in the virtual space of the Internet. Trading markets are located world-wide and because of difference in time-zones trades can be made 24 hours a day, 5 days a week. Trading begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and continues non-stop until Friday afternoon New York time.

The huge volume of FOREX and its around the clock availability, means that it is one of the most liquid markets in the world. There is always a buyer and seller for any type of currency because the world economy relies on the movement of goods from country to country. Stock exchanges have more limited trading hours. While it is possible to trade on exchanges worldwide, each exchange is independent and operates for just 7 hours a day. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed.

FOREX has even more advantages compares to Stocks: It is more predictable than stocks, it follows well established trends.

The big question is what is Best for you? Are you looking for a Day-Trading constant activity, with its advantages, or a long-term investment. Know the answer and you know the nature of your next investment.

Which ever you chose, always remember that money management is the most important factor to be considered.

I personally prefer forex, pero kuya ko sa stock market naman. :hihi:



nailbiter

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Reply #4 on: Aug 01, 2006, 09:43 AM
Cite lang ako ng source ng ni-share ni sam_1_els (it's been reprinted elsewhere, actually, kaya baka di rin mismo dito galing):
http://www.ezinearticles.com/?Is-FOREX-Trading-Better-Than-Stocks?&id=80722



Wynn

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Reply #5 on: Sep 28, 2006, 12:44 PM
eto naman sagot ko...

ok sila na dalawa na investment basta you're in for risk.  better is where your forte is kasi you'll likely succeed there.  What is better for others is not necessarily better for you, right?  So better ask yourself which are you beter of and then go...

dalawa sila (stocks & forex) pag marunong ka malaki kikitain mo pero pag minalas ka naman at di ka pa marunong laki rin lugi mo ;)


SuperPIP

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Reply #6 on: Oct 17, 2006, 10:56 AM
hiya

just mentioning my thoughts about FOREX

1. in my opinion currency is less subject to manipulation. Being a trading vehicle that is traded by people all over the world and by countless volume, i regard currencies being more 'pure'... if you know what i mean. By that it leads itself to be better analysed using technical analysis.  

2. volume...the amount you trade is only limited by the capital u have. Hopefully of course we'll end up being successful with trading and with the volume traded in currencies we won' have to worry about being limited by the trading size we trade as our capital grows.

3. Risk management. With the trading platforms available, risk mangement with forex is quite straight forward. Mosts platforms provide guaranteed stop losses, and with the nature of Forex (ie being 24hours and with high volume) you don't have to worry about your stop being not filled out or any order for that matter.
With stocks you are exposed to gapping.

4. Leverage. forex trading offers greater leverage than stocks ^^

5. Depending on ur trading style, forex i find provides more trading opportunities for those who consider themselves as short-term (days) traders.  

hmm thats all i can think of at the moment. As you can tell i am biased toward FOREX but am certainly interested in learning how to trade stocks in the future too.  

happy trading!  :yehey:


dragontan

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Reply #7 on: Oct 17, 2006, 11:02 AM
For me I'm kinda of torn which way to go.

Phil stocks at the moment kind of suits my lifestyle, because I help with the family business, so I have afternoons to concentrate on work.

But trading stocks is a treacherous route, you need to be sharp with your technical skills,be patient and have big guts.

This discussion is interesting, do you guys know of any local forex trading platform?

I want to see if i can get access to a practice account and try my hand at forex trading too.

  ;)
« Last Edit: Oct 17, 2006, 11:10 AM by dragontan »


ultimate

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Reply #8 on: Oct 17, 2006, 01:47 PM
try mo http://www.philstocks.ph. meron din forum yan para madali ka matuto.
« Last Edit: Oct 17, 2006, 08:16 PM by FutureGizmo »


benz666

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Reply #9 on: Oct 17, 2006, 02:11 PM
I go for both since both investment avenues can be used to help yourself to profit. Both has it advantages and disadvantages...  :-D


ekimonk

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Reply #10 on: Aug 02, 2007, 01:03 AM
sa stock market merong mga safe and secure stocks or choices ka..  pag yung mga stocks na yun ang binili mo siguradong wala kang talothese are stocks like PLDT, BPI or so called blue-chips/large cap

sa stock market meron din namang small caps or higher risks , mura pero pag tumaas jackpot ka.. pag nagsara naman, goodbye sa pera mo..

sa forex puro high risk.. wala kang choice na safe investment..



Mike QC

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Reply #11 on: Aug 02, 2007, 02:20 AM
Quote
sa forex puro high risk.. wala kang choice na safe investment..

WRONG!  Although I am both a stock and forex investor, I'm sorry but I have to disagree. I hope I'm not giving the impression that I'm being bias here because I'm NOT. I love both stocks and forex. UNKNOWN to many and even to some veteran forex traders, there's this very safe methodology that we call "Inverse Hedging" (or Non-Directional Trading) where we trade currencies that moved in opposite directions which significantly reduced our risk in the market. We simply hedge on negatively correlated currency pairs and at the same time we take advantage of the generous daily interest (swap points) that's being credited to our account by our broker each day so it's a win win situation for us, specially with a leverage of 400:1. Using our Freedom Rocks "Inverse Hedge" methodology, we always trade the EUR/USD against the USD/CHF and sometimes we include the GBP/USD pair that gives out even more interest gains each day.

YES sa forex nagiging totoo lang yang sinabi mo na puro high risk lang if traders would trade the very common traditional approach (or Directional Trading) where there is no hedge to protect them but just the usual placing of stop loss orders. And again always remember that traditional forex trading (or directional trading) statistically entails 95% failure rate. It is like taking a gamble because you're rolling the dice hoping the trade goes in your favor when it could very easily go against you regardless of how good you are in TA, reading those charts and indicators. :)


ekimonk

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Reply #12 on: Aug 02, 2007, 02:36 AM
whatever you say.. sa forex puro speculation lang..its like gambling.. ano bang analysis ng fundamentals ang ginagamit mo dyan?  puro trends lang yan e.. para kang tumataya sa karera ng kabayo..

that is what's risky in that kind of investment..  sa stock market if you know that a company is selling well then you are safe.. kahit iwan mo ng buong buhay mo yung stocks na yun you won't have to worry about your money turning negative.. sa forex pwedeng mag negative ang pera mo dyan..

« Last Edit: Aug 02, 2007, 10:09 AM by nailbiter »


Mike QC

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Reply #13 on: Aug 02, 2007, 03:28 AM
Well, there you go again with your traditional impression of forex trading.  That's why we hedge because there's not much involvement of speculations, FA's & TA's.  With "Inverse Hedging", we never have to worry about market downswings and we can even confidently leave our positions/trades open for a year or more without having to trade at all (at low margin settings). We simply take advantage of the interest rates (swaps) that we gain each day. Always remember the rule in trading, what goes up must come down and what goes down must come up so regardless of what value our currencies are at any given period it doesn't matter because even when our account is in the negative (or on floating loss), it will always go back and even surpass the previous levels along with our interest gains.

Even in stocks, some intelligent traders hedge their positions too in order to reduce their risk of adverse price movements in the market and some even use the "arbitrage" technique where stock traders/investors purchase and sell the same security at the same time in different markets to take advantage of a price difference between the two separate markets..

I suggest you enroll in our forex school so you know what I'm talking about. :think:
« Last Edit: Aug 02, 2007, 04:06 PM by Mike QC »


lehboy

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Reply #14 on: Aug 02, 2007, 03:34 AM
Each has it's own merits. Hindi lang puro 'gambling' ang forex, pinag-aaralan rin yan unlike what you think Ekimonk.  

Ang fundamentals sa currencies are the underlying economies of those specific currencies.  You look at the GDP, unemployment rate, jobless claims, consumer spending reports, etc.  If a specific currency shows stronger fundamentals as compared to the other, then we can say that that currency will 'appreciate' in comparison to the other.

The interactions are quite complicated when you include other economic factors as well as the different monetary and fiscal policies being employed by the governments of the specific countries.

If you want to do technical analysis, then read the charts and backtest specific trading strategies to see one that best suits you.

As Mike said, there are directional forex traders and non-directional ones, the popular one here in PMT is the Freedomrocks hedging system we've been talking about since October last year. Ekimonk, I suggest you read up on the other threads on Forex trading as well.
« Last Edit: Aug 02, 2007, 03:37 AM by lehboy »


 


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