Trading forex is profitable more than stocks or not?
- Posted:
- 3+ months ago by Sofiya Lim
- Topics:
- stock, trading, forex
Answers (1)
IMO Forex is more like gambling. Take any Forex advisory book and you will find ideeas as 'do not put more than 2% per a position'. TP should be at least 3X SL etc. This is exactly what you can find for poker. It is not the market itself which make the trade more profitable/higher losses, it is the leverage involved. If you play forex with a 1:200 leverage then if you are lucky and hit the pot you can earn big money. If you are unlucky you lose big money. Stocks (real stocks) can not bring so huge swings in the walet especially if you apply a portfolio diverification strategy for risk management purposes. But if you play a stock-based derrivative (e.g. CFD), also highly leveraged, then it is the same as forex. To me, stocks are safer as the rules that drive their price are easier to understand compared with the whole macroeconomics and globalization around currencies