Thursday, June 29, 2017

Currency Trading or Stock Trading?

currency bank notesWe get alot of questions from readers who understand the differences between stock trading and currency trading, but are unsure which is right for them.

We are probably a little biased at currency-trading.com.au, however we believe currency trading offers a number of advantages over traditional stock market trading – especially for the time poor or new investor.

Currency Trading Never Sleeps!

You can trade Forex pairs 24 hours a day because its a worldwide market – you can choose to trade in the US, Asian or European markets which means round the clock action – you can easily keep on track of this in your spare time even if you work long hours.

Less to Learn & Understand

We’ll never try to claim that forex trading is simple or easy, but there are thousands of companies listed on the stock market and you have to spend a lot of time researching and investigating a company before taking the plunge. There are less than 100 currency pairs traded and most of the action happens with the top four major pairs, meaning you’ve got much less to know and much less to learn!

Short-term Results

Each trade you do on the stock market is usually a long-term trade and unless you get a real bargain or get lucky, you’ll probably plan to hold that trade for a year or maybe alot longer in order to realise a decent return – currency trading is much quicker and you can organise and conduct trades within a very short time frame . This allows you to test the market and refine your strategy

Works in Both a Falling or Rising Market

Because you are always trading currency pairs, it doesn’t matter if the market is falling or gaining you can still make money, in the stock market unless you’ve setup a complex trade you’ll probably end up out of pocket if a market suddenly starts to swing, usually downwards

Not as Exposed to Buy/Sell News or Analysts

In the stock market if there is some sudden activity happening with a particular stock, for example a superfund buying or selling a particular stock if can quickly affect values, even if its not a true reflection of what is happening.

You also see instances of media analyists reccomending to buy or sell stocks at a time when you really don’t need them to be doing it!

The currency trading market is generally not affected by this kind of activity because its such a massive market controlled by major governments, banks and major corporations.

Summary

Share trading has its place in every-one’s portfolio and if you are keen for a long-term investment, something to buy and hold for the future, its a sensible strategy. However if you want to really get stuck in to a market, where you can get some quick wins and short-term profits then currency trading offers many advantages over traditional share trading. Its an exciting, potentially very profitable and fun market to be involved in.

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