Day trading forex VS stocks is a tired old debate, where neither side has won the argument. It’s simply about two different types of markets, and nothing more.
Day Trading Forex VS Stocks – the Differences
Day trading forex vs stocks has been debated by many traders. Forex traders prefer forex because of the wider range of markets available. Stock traders prefer stocks because they have stock-specific information and data available. Nonetheless, when the stock market moves in a given direction, so do 70% of all stocks. Having a good understanding of a particular company listed in the stock market can indeed offer accurate trading of its stock. Some stocks can move far more on a typical day, than currencies do. And if the stock is a penny stock, then much larger opportunities are possible. Day trading forex on the other hand is quite different. Because on most profitable days, traders make medium size gains, but these days occur very often. Stock day traders may watch a stock for days and days, and only finally have the chance for a massively profitable trade which will occur just once. Day trading forex vs stocks is a good debate for all new traders. As they have to consider these facts one by one. And make a decision, depending on their analytical skills, which market is better to trade. So ultimately there is no fair comparison between the two. Because it is like comparing apples and oranges; it’s that simple!
Day Trading Forex VS Stocks – A Beginner’s Best Choice
Day trading forex vs stocks is a tough decision for beginners. But since beginners lack analytical skills they are better off trading as follows: They can choose to day trade forex, in any way they want. And there is room for success, in many methods. If they choose day trade stocks, they have to refrain from using news stories in the media. These stories are related to the stocks in question but they never lead actual stock price. Only news from premium information sources is useful for day trading stocks, and still it is difficult to do. Nonetheless, news trading tends to work better on stocks, than on currencies. Any beginner who knows what is CFD trading can actually choose a good CFD forex broker, or one which offers CFDs on both forex and high volume stocks. Beginners can test day trading both forex and high volume stocks, and see how each market works in reality. You will see that both can be extremely risky. But both can also be managed and profitably traded. If you are considering day trading through a scalping strategy, then you definitely have to choose forex over stocks. The higher liquidity of the forex market, during inactive hours, ensures market price will provide good scalping opportunities. Stocks are not good for scalping, because even a single institutional trader can actually make the market move, when they trade. Even during the usually inactive lunchtime hours in the New York session, a stock can spike excessively up or down, thereby ruining a scalping trade.