For day traders, is trading Forex really harder than trading stocks?….
Forex trading seems to rely more on technical analysis, which doesn’t appear to be that hard.
I spent most of my time trading forex instead of stocks, so i definitely say stocks is harder than forex.
There are 8 major pairs to focus in forex, and they are all liquid.
While for stocks, you need to scan what stocks are moving and liquid from thousands of listed stocks, so your focus might be overwhelmed.
The wide range of stock’s price also give you another headache.
Since you need to make sure your capital is adequate.
Let’s say GOOG or AAPL is moving, so you got chances, but the price of those stocks will limit your buying/selling power.
With forex, you’re sure the price of eight major pairs are not much different from time to time.
So if you could trade 100k/1m with your existing capital today, your chance to trade 100k/1m tomorrow is almost the same.
If you spent enough time with stocks, you then might notice,
sometime shortsell for XXXX is not allowed, even XXXX is moving and liquid. This never happened with forex.
With this in mind, now you’re boxing with one hand, only buy is allowed.
In forex you always be able to fight with two hands, go long or go short.
- Forex Heiken Ashi Moving Average Trading System with Multi MACD
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Another caveat, each stocks have different collateral.
If you can buy/sell 100 qty of XXXX with your USD 50,000 deposit doesn’t mean you can buy/sell 100 qty of YYYY with the same amount of money. So this is another headache you don’t find in forex.
Finally, last headache with stocks, if you trade US stocks, you need at least USD 25,000 for day trading while you don’t need that much for day trading forex.
It is not so easy to make money at Forex trading…
As mentioned above, it is not so easy to make money at Forex trading… But you can learn to win and the rewards for your efforts can be life changing. Learning a good strategy will lead you to Forex trading success. Not having the right education is the biggest hindrance to make money in Forex trading.
Having the right mindset is another important thing for success.
Again… The correct mindset is the key element in achieving success.