Forex OR stocks what exactly should I choose
- 2023/2/25 6:23:27
- read: 6
foreign exchange forex trading session times forextradingtime stock market in different financial categories are weight class but these two markets contain hundreds of financial products, from the yen currency pairs to technology stocks and so on, unless you are an investor with a lot of experience, otherw cashback forexe want to diversify in different markets, really not very practical many readers have been on their own in which market to devote their brains, I am now to you A simple analysis of the advantages and disadvantages of the foreign exchange market and the stock market, I hope that small partners forextradingmarket quickly distinguish between the two different markets and make a favorable choice Advantages vs disadvantages of foreign exchange trading Best liquidity When it comes to market liquidity, the foreign exchange market is the undeserved king of the foreign exchange market with an average daily trading volume of 5.3 trillion dollars, so there is no doubt The most liquid financial market for novice investors, liquidity means that you can freely choose to enter the trade or out of the field, without worrying about brokers messing with the offer, because they also can not find a matching counterparty Trading hours without interruption Foreign exchange is open 24 hours a day, 5 days a week, unlike the stock market will be closed every day all the exchanges around the world in different The market is open or closed at different times, so no matter what time of day it is, you can always find at least one or two exchanges that are trading This has certainly gained the favor of many people who are unusually busy during the day and can only trade late at night Freedom to choose the leverage ratio Many forex brokers can offer higher leverage options such as leverage ratio of 200:1 forex account, meaning that the 1 you put in If used properly, investors can use leverage to accumulate account funds at a fairly impressive rate one of the disadvantages: the possibility of encountering price manipulation the disadvantage is that if you encounter a lack of regulation of foreign exchange trading, then any person holding a large enough account can manipulate prices because foreign exchange is still a relatively new industry, there is currently There is not yet a global regulatory body that can protect investors from the bad tricks of the big players in the market Large banks and venture capital funds, etc. are among the big players in the market Disadvantage No. 2: Leverage ratio Leverage ratio is a double-edged sword, it is also one of the disadvantages Leverage ratio gives increased purchasing power, and it also makes you lose more money if the trade does not use a reasonable position, traders are vulnerable to margin calls, especially during periods of intense market volatility Advantages vs. Disadvantages of Stock Trading High Return on Investment Ratio The impression for the uninitiated is that the stock market had the highest return on investment (ROI) in history between the late 1920s and 2010, with an average ROI of 11% for stocks and only 3.66% for treasury Bonds are only 3.66% free resources novice investors can always find countless free stock investment advice and information, blogs or online financial sites, etc. can provide valuable content amazing long-term cumulative returns in the long run, the stock market is also a very profitable investment channel compounding earnings and dividends over time will Form a large fortune Assuming a medium annual ROI of 8% for stocks, if you put in $50,000, after 20 years, the investment will become $233,047 Adjustable risk tolerance Another great benefit of stock investing is the adjustable risk tolerance Weaker risk tolerance investors can adjust the direction of their investments and choose only those with Real track record of quality company brands for investors who want higher ROI and can afford to take more risk, they can choose fast-growing, high-potential startups and technology stocks as they wish Disadvantage one: risk often comes with However, just like other markets, stocks are not completely free from risk even with the best strategies or the most advanced software, some Trading will make you lose a lot of money Disadvantage two: complicated stock data for new traders, the stock trading interface is more complicated and may make people timid data streams are always displayed in different windows, if the trader only has a computer screen, it can only constantly switch between windows to view the data updates in fact, to say in the end is the foreign exchange market The market is a very good place to be, but its a very good place to be.