If you are about to start your investing or trading career, you should know that this is probably the best decision you have ever made. You are very close to making your money make more money for you. But, before the winds of luck lift your sails, you still need to decide where to go next. In other words, you should choose the financial market that best matches your personality and investment approach.
In short, a financial market is a place or environment where traders — traders — buy or sell assets. The variety of financial markets is very wide, ranging from bonds to commodities, and there is no easy answer to the question of which one is better. Still, two of the most popular types of investment are Stocks and Forex.
First of all, you must remember that the two markets are of different styles, they require a lot of training, special knowledge, training, application of tools and certain risk management skills that come with the passage of time and with the lessons taken. The other differences refer to the type of instrument — in one market foreign currencies are traded, in another, shares belonging to a given company —, current regulations, parties involved in the transactions, among other aspects.
Stock market
For many people, the stock market (the stock market) is the most traditional way to make money investing. In short: to apply, you need to buy a small or large fraction of a company (stocks). As the company achieves good results, its stock price increases. Some stocks even pay dividends when the company does very well. As in this case you are trading with the ups and downs of specific companies, it is necessary to pay more attention to news and rumors than to technical analysis. This can be very exciting. Any trader can buy shares in world famous companies — like Apple , Google or Facebook — and get a 20% profit.
At the same time, trading in the stock market has some disadvantages. With tens of thousands of companies to choose from when investing, this can be pretty daunting. It is worth mentioning that the stock market can be complicated. You must always have patience; you never know when a company will decide to file for bankruptcy or merge.
Unfortunately, it takes at least $2000 to get started in stock trading (this is usually the minimum amount). For a healthy portfolio, it is recommended to have at least $10,000 to start with, which makes the stock market not very accessible for novice traders.
Forex
The foreign exchange market is a globally decentralized currency trading market in which an amount of 5.3 trillion US dollars is traded daily. It is present in virtually all time zones and gives traders the opportunity to trade 24/5. When the market closes in the US, the trading day begins in Tokyo and Hong Kong. Time flexibility is very convenient for traders who have a busy schedule: you don't have to worry about the opening and closing hours of the market, being free to schedule your trades whenever you want.
The fact is that millions of investors choose to trade Forex because it tends to be the best income and investment opportunity. Today, everyone can easily be a Forex trader and manage transactions at home or on the go using the mobile version of the latest trading platform on a smartphone. Advanced IT technologies have allowed the Forex market to double in size over the last decade.
The biggest advantage for novice traders is that you don't need a lot of money to get started in Forex trading. Forex brokers require, on average, around $100 to open an account and start trading, but there are very attractive offers on standard, micro and even cent accounts, with initial deposits starting from $1. Floating spread from 1 pip, 200 open positions and pending orders, leverage up to 1:1000, all included. Sounds good, doesn't it?
The main disadvantage of Forex Market is caused by its biggest advantage. It is huge and therefore it can seem quite complicated to keep track of all currency pairs. The movement of currency prices is usually caused by the latest news, rumors, political and fundamental issues, as well as major regional or global events. The foreign exchange market is extremely dynamic and unpredictable. But with a smart strategy, enough patience and knowledge, well-informed decisions and proper risk management, Forex trading can turn anyone into a millionaire. It doesn't take much effort to venture out as a Forex trader, so why not give it a try right now?
0 Comments:
Post a Comment
Your comment and facebook share will be appreciated