Is Day Trading Forex Really Harder than Trading Stocks

Harder is a relative term.  Successfully trading any financial market requires a certain amount of skill and capital.  Day trading in stocks and Forex share a lot of the same stresses – being constantly plugged in, watching news and price action and so on.

When people refer to Forex trading being riskier or more difficult than stock trading, they usually mean that it is more difficult than buying and holding stocks (apples to oranges).

 

Day trading, whether in the forex market or stock market, generally involves being committed to the screen for an entire trading day when you have a trade (or trades) to monitor.

Forex trading involves making a lot of time sensitive decisions rather than a single analysis and then making a long-term investment.

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However, this is a bit untrue as fundamental forex traders may keep a position for weeks or months, checking it rarely. They have this luxury because they usually use less margin than forex day traders.

So, I guess the best answer is that a day trader will find that day trading in forex is very similar to day trading in stocks once they learn the basics.

The pressure of time and multi-tasking is the same, but the market mechanics are different. If the day trader is already using technical analysis as the primary tool in the stock market, then forex day trading will be even easier to pick because, it is very technical and the liquidity is higher.

But, what usually makes it harder to profit from trading forex is our lack of discipline and our impulse to make a lot of money in a short period of time .

Most traders cannot resist the opportunity to use high leverage and they lose all of their money while trying to win the jackpot.