FOREX vs STOCK Market! Which one is BETTER and WHY?!

Are you better off trading the stock
market or the forex market? Now, I know this is quite a generic question but it
is the one that I come across time and time again. So, today, I want to look at
this in some more detail so you can get an idea of what the advantages and
disadvantages are of both. Then you can make a decision which way you want to go. Here we are, back in sunny England for
those of you that have been wondering where I’ve been for last week. Just say,
I’ve been off the airwaves. I’ve actually been on my annual vacation to the
Philippine Islands flying around and exploring though I’ve factored 7,200
islands that make up the Philippine Islands and I was able to explore just
four of them. So here’s to next year, see if we can take in a few more. Before I
continue on this very important topic of what’s the preferred route to trade,
either Forex or the stock market, I want to remind you to subscribe to my channel
if you haven’t already done so. Now, over the last couple years I put together a
whole bunch of educational videos. All free, once you subscribe to the channel
that will be there at your fingertips to explore in your own time. Also, don’t
forget to hit the notification icon. That way, you’re going to be notified the moment a
new video has been released. Okay, let’s get straight into it. So what is the best
to trade? Well, let me say, I think this really does come down to your personal
objective, ss much as anything. Right, so, what is the best approach? Well, generally
speaking and I mean this in really general terms, stock market investing is
for the longer term. So, for example if you have a longer term
objective say a 5 to 10 year plan, you might want to look to fund a pension or
indeed, pay for school fees. That generally speaking, trading the stocks
will be the preferred approach. If you can find some stocks with some decent
balance sheets and decent price earnings ratios, and a decent outlook with a good
customer base and a sound business model, then that again could be their preferred
approach. Think about it for a moment. Most pension funds that make up the
pension industry are made up of stocks and bonds, a combination of the two. Very
rarely, do you see a pension fund made up of foreign exchange exposure,
and it is there to hedge, of course. So stocks are generally, used for more
longer-term investment. If on the other hand, your objective is a shorter term,
perhaps you’re looking to supplement your income; possibly giving up your day
job altogether and become a full-time trader, then in that case maybe Forex
might be the preferred approach. And that is for a number of reasons. First of all,
I will say this, if you’re trading the stock market, there are literally,
thousands and thousands of different stocks available to trade globally, of
course. If you look at the S&P, for example, that’s made up of 500 US top
stocks. The Russell index made up of 3,000 stocks, and of course that’s just
in the United States alone. The same in the UK and around Europe. The stock
market is made up of multiple, multiple stocks getting, a grasp, a handle on any
one individual stock could be quite difficult. You’ve got to do a lot of
research; however, if you’re inclined to be able to do this research, if you’ve
got the know-how, and you’ve got the experience that you can analyze company
data, you can analyze balance sheets, then of course, stocks can be very very profitable. But there’s a whole bunch of stocks out there, that you need to do this work
on, and this analysis on. If on the other hand, you look at the forex market. Now
the forex market it’s generally made up of say 10 different currency pairs so
you can actually spend a lot less time analyzing an individual currency pair
than the vast array of stocks available out there. But again, it does depend on
personal objective, and of course the amount of time that you can allocate to
this. Also, if you are inclined to be a fundamental trader, a fundamental trader
basically looks at the reasons why a stock or indeed a currency pair will
move if you are fundamental trader that of course trading stocks may be
preferred way to go because the fundamentals are a lot easier to
potentially understand then possibly the forex market. Certainly, if you understand
how to read a company balance sheet and so forth. If on the other hand you want
to be a technical trader, then I would suggest that the forex market might be
easier. The forex market is huge. It has a massive participation of about five
trillion dollars a day, made up of retail and of course, institutional players. Now, the other thing that you need to consider is the
ease of access. It’s far easier when starting off to access the forex market
than it is the stock market. And often people that are coming in to trading for
the first time, only have a limited or only want to risk a limited amount of
money when getting going- to see if trading is for them or not.
Now, when you start trading the forex market, you can start with just a few
hundred dollars but difficult to do that in the stock market. Many brokers won’t
allow you even to open an account to trade stocks unless you have a few
thousand dollars to get going. Significantly higher than opening up a
Forex account. Now, the other thing that you have to consider is leverage. If
you’re starting off with just a thousand dollars, then of course the forex market
offers leverage. Sometimes, insane amounts of leverage! Now, I don’t encourage anyone
to trade with insane amounts of leverage. In the old days, they used to be able to
offer 200, 500 to one. I think that’s absolutely ludicrous. Well,
the video talks about this. You should be trading leverage of really nothing more
than really 20 to 1 . The recent ESMA regulations in Europe in fact, pull down
the leverage, that’s permitted. But when you trade in the forex market you have
access to huge leverage, so you can start off with just a thousand dollars. If you
were trading trading 20:1 leverage, you’re basically exposing yourself to
twenty thousand dollars in the market. That’s not as as easy to do when you’re
trading the stock market. So, you need a higher amount of money to start with
when you’re trading the stocks and certainly if you’re learning then you
may not want to risk a higher amount when getting going to site; to deciding
whether or not trading is for you or not. So leverage is available in the forex
market. Much more so than in the stock market and certainly you can start
experimenting with small amounts of money, to see if you are indeed, have what
it takes to be a trader. The cost of trading, generally speaking, is cheaper
in the forex market. Might just pay a commission, small commission, and indeed,
the spread . In some cases you won’t pay any commission at all,. You’ll just pay the
spread and it stocks, it’s almost certain you’re gonna spend money on the spread
as well as a decent sized commission. Certainly more than the forex market in
most cases. And if you’re starting off in trading, You know. You’re deciding if this
is gonna be right for you, you’re finding your feet. The last thing you want to be
doing is competing against the broker with the fees and the spreads and the
commissions, as well. Now, the forex market is open 24 hours a
day. So no matter what timezone you’re in, there’s always going to be a market open.
Of course, not on weekends. Now, certain times of the day will be more liquid, of
course, but of course, you can trade different currencies in different time
zones to fit in with where the liquidity is. You also fit in to your lifestyle if
you’ve got a day job whatever you may be a shift worker or maybe only have a few
hours a day in the evening now if you’re trading the stocks for example stock
markets are generally open from 8 to 4 on to the stock markets closed you can’t
trade so if you want to trade the US stock market generally speaking you’ve
got to be there when the US stock market is open specific times now the next
thing you need to consider is the liquidity now the major Forex pairs
generally have super large liquidity certainly the Euro against the US dollar
which is the most actively traded currency pair out there this means that
you can always get out of a position whether it’s for a profit or a loss
without too much slippage which is basically the difference in the price
that you see on the screen to the price that you get fill that now sometimes in
the stocks certainly in the lower cap stocks this know that this liquidity is
not always there which means the slippage could be higher sometimes
you’re in a position you want to get out and you can’t get out because of the
quiddity has dried up so what you see on the screen isn’t necessarily what you
get but on smaller accounts this liquidity can really affect you you last
thing you want to be doing is losing money on the slippage now of course the
higher cap stocks they have normally higher liquidity but the higher cap
stocks generally means that the price of the stock is going to be higher the
price of stock is higher chances are when you’re starting off in trading a
smaller account you’re not going to be able to get much exposure because of the
price of the stock is higher so the quiddity is a main factor
super high liquidity in the forex market sometimes not as high liquidity in the
stock market if there is high liquidity generally the cost of the stock is
higher meaning your exposure to that stock is going to be limited now if you
are inclined to be technical trader now technical trader
looks at previous price action and looks for patterns to repeat themselves they
look at charts to see what prices being in the past to see where prices may go
in the future now in my opinion and this really is just my opinion that the
technical traders are more angled to the forex market than they are the stock
market why because the forex market is the largest market on the planet
actually equates to 5 trillion dollars a day so the key levels of support and
resistance I think are more respected in the forex market because there’s many
many more players than there are in the stock market which has made me generally
driven by fundamentals more so than the technicals as I said this really is a
personal choice based on objectives and based on your character are you more
likely to be a fundamental trader where you’re looking to analyze company
balance sheets and looking for price earnings ratios and looking at markets
in general or are you more likely to be a technical trader in which case I think
that the forex market might be a preferred way to go certainly if you’re
starting off the ease of access the liquidity sways the Fox market all day
long for me for those that don’t know me I started my trading career over 30
years ago in the city of London standing there in the trading pits look
at that guy there with all that hair isn’t that amazing for me the migration
from the pits to the screens was quite easy because of the fights market I
didn’t have all the knowledge about company balance sheets and didn’t have
that experience for me I purely looked at price for me trading the forex market
is much more akin to trading that I grew up with in the trading pits that’s why
I’ve chosen the forex market that’s why it gives me the best opportunity because
it’s something that I’ve grown up with whatever choice you decide I hope you
are successful as always if you liked my video give me a thumbs up if you didn’t
give me a thumbs down don’t forget to leave a comment and as I said at the
beginning make sure you subscribe to the channel so you can access all my
previous videos don’t forget to hit that notification icon see you notified the
moment my next video is released till next video happy trading and good luck

78 thoughts on “FOREX vs STOCK Market! Which one is BETTER and WHY?!”

  1. I hope you enjoyed your stay here in the Philippines. Thank you for another very informative video sir. I always watch your videos.

  2. I embarked on a one week forex trade with Mr Hurley Jordan, after I made my deposit $5,000 my slot was activated and a passlink was sent to my email with which I was able to access and monitor my investment till a gain of $22,500 was yielded

  3. Major indexes are cooling down and Cannabis and Hemp industry is booming. These INQD DPWW BLPG DIGP UBQU HEMP HIPH AGTK RMHB are hot now due to the coming USA Industrial Hemp Legalization by the end of September. They are super cheap. They have huge upside potentials.

  4. Your knowledge on stocks is not quite accurate you can day trade volatile stocks called penny stocks….you dont have to invest in them……you dont believe me look up a guy called tim sykes….

  5. In my experience, trading stocks is far better than forex. It is difficult or even impossible to day trade forex, but in us stock market day trading is a fun and easy to be successful.

  6. Forex market is full of manipulation, it is not a regulated market. Stock market is a regulated financial market with very low amount of price manipulation

  7. Trading stocks as CFD you only pay the spread, no commissions. Stocks provide ample trading opportunities for trend trading system compared to FX where trends are generally short lived. I prefer stocks.

  8. In my experience day trading/ swing trading the forex market is incredibly difficult and much much more volatile while the Stockmarket is a lot easier and a lot more relaxed.

  9. Don't mean to be jarring but this is all mundane info. Please tell us something we don't know. Please tell us how you trade and share your strategy to make money consistently, if you have any.

  10. the profit is 100-150% per month. working drawdown 15-20%. history of trade and subscription to copy positions here

  11. Mr. Nicolas Scott strategy gives out some really great information for new traders which could save you from losing your account deposits. I just can't stop receiving strategies from you. If interested do well to hook up on him when needed on [email protected] com

  12. When a trader considers a position it is about two aspects, the probability average of taking that trade based off the method that trader is trading and the reward potential being more than the probability average. In other words: if a trading methods probability average is 60% and reward potential average is more than a 2 to 1 reward to risk profile, then that trader is very profitable or if the trading methods probability average is 50% and the reward potential average is more than a 3 to 1 reward to risk profile, then that trader is very profitable or if the trading methods probability average is 40% and the reward potential average is more than a 4 to 1 reward to risk profile, then that trader is very profitable and so on. Connect with Alasdair Leonardo via [email protected]

  13. Hurley Jordan's forex trading system is actually legit I just got to confirm for myself. I came across good comments about his system, after giving it much thought I traded £1000 about a week ago I just confirmed my payout of £18,980. If you doubt me you could hit me up so I could show you some proof here's my email address, you could hit me up on hangouts [email protected]

  14. Have heard so much about MR MICHEAL`S strategy but i didn't believe it not until i made contact with him and learn his trading system and his strategy has really helped me a lot and make me rich. I will like you all to contact him on.
    [email protected] gmail .com his strategy is reliable and profitable, much appreciation to MR MICHEAL.?

  15. Fear happens to be man greatest enemy, the spirit of determination and Persistence keeps you on top, I lost many trades in the past until i came across Mr. Nicolas who assisted me with his strategies and techniques and now my story has changed. have confidence in yourself and become a giant in this business of forex trading. Get in touch with him ([email protected] .com)

  16. Sir Nicolas Scott software and app he uses on forex trading has certainly turned my life around and it can do the same for you, if you give it just one chance. Well i would say is a money making machine because it gives you profit of 90 percent of your time, which is unbelievably awesome for someone like me who have always been looking for other means of making money. Mail him if interested in trading..([email protected] com)

  17. In stock market you have 1to1 leverage but in Forex 1to100 in general.. That is why in forex you are going to lose much faster. My advice: Don't go to 1 to 100 start with 1:10… you will be exposed to little losses and get little earning but will never try to suicide ?

  18. Earn much with out working I am so happy.I invested $500 now I can boost of $9000 thank you Mr Harry mark George

  19. Thank you for publishing such helpful content, whilst I appreciate the merits of naked trading can I ask if you have one preferred indicator to help with confluence? For non-forex I would consider volume (if I’m right in that volume leads price) but forex is new to me. Many thanks Steve ?

  20. In forex, you'll be playing up against very very large institutions with lots of money and information. They manipulate the price a lot. So you'll have to be very good at forex to make money. With that in mind, it is a good place to learn with little capital as long as you trade small. It was cake when I switch over to stocks.

  21. Thank you for your video.
    Please answer me about that; if forex is so benefit why the bilioner like warren buffet trade stocks and we do not know any bilioner person in forex market. , Why????

  22. I lose 3 times in forex trading.
    I did't get any profit on it.
    I also used all the indicators but i haven't get any luck of it.
    Pls give me an advise.

  23. Forex trading is a relatively new investment vehicle which is catching steam and offers many distinct advantages over traditional stock trading. The candid question here is, can you successfully trade forex?

  24. An experienced, consistent and profitable trader knows that volatile markets are no issue when it comes to day trading. Forex all the way ?

  25. This is a great video. I am using it in my own website about this topic here:

  26. Well that's absolutely false that you would pay more in cost of trade in the stock market, because first of all, there is no such thing as a spread in the stock market. They only fee you pay is a fixed commission of around 4.99$ to 9.99$ per trade depending on every broker, which in the long run, saves you a lot of money compared to the spread which is applied on every dollar invested in forex.

  27. First off let me just say thanks for visiting the Philippines. I loved your 5 minute scalping strategy video. Ill probably use that one when i actually start trading real time. As of now im still practicing. I wonder if you have any videos or tips for newbies in forex such as myself? Would really appreciate it.

  28. Thank you for the inspiration, as a beginner you've made it so much easier and hope to pop a bottle or two in your honour. ???

  29. Wrong, stock trading in the shorter term can be far more profitable than forex trading due to things like small caps in which its common to see a 20% return on a single day trade position. There are also far more edges to be explored in the stock market compared to forex because some catalyst like earnings/fda approvals can send a stock flying.

  30. I'm a technical trader that had issues making a watch list with stocks, haaaaaa and then theres forex, thanks Mr 🙂

  31. This is completely biased on the forex side everything you do in forex can be accomplished in the stock market. You can select a number of stocks to trade daily (I trade the same stocks everyday) of stocks to trade daily just as there are pairs in forex. I'm a strict technical trader and achieve being so in the stock market because I trade the same stocks everyday. I never have liquidity issues because the stocks I trade have 10M+ shares traded daily, on average, 22M+ on a really busy day. I was able to trade every day using $5k trading account. In my opinion there is no right or wrong, no better no worse, yes the markets are different but all that really doesn't matter if you trade like the 95% of the people in the market.

  32. Love this channel and I'm a subscriber but although I've traded both FX and stocks over the years I've more or less given up on the former. I now trade the stock market almost exclusively in my personal pension plan (SIPP) and it's a heck of a lot easier. Trading with leverage (and margin) is a nightmare, one I didn't truly understand until I traded without it. True, the cost to trade is greater but I use a calculator to show me potential profits or the price the share needs to reach to make break even (the level at which all trading costs are paid for). As I trade in my pension plan I don't pay capital gains tax plus any money I pay in is offset against my income tax – win win (it's like getting a bonus from the broker each time I add money).
    There are many more trending shares than there are trending FX pairs – lots more, plus I can be very relaxed with my stops (not having to worry about leverage or margin). I don't day trade but I've still managed to grow my account significantly using signals from monthly and weekly charts (margin and stop loss placement can make trading FX on those time frames almost impossible). Trading simple pin bar, false break or break out set-ups against a 20EMA on different timeframes is all I need. I do check fundamentals but mostly the price shows the way – it's the only barometer of what everyone is thinking. Plus, the pension funds use big levels which get fairly easy to spot (supply and demand and all that).
    This channel is still great though – after all trading is trading. Keep up the great work.

  33. I been on and off trading since I was 19 I’m 21 now and what I’ve learned is that if you have $25,000 then I’d say stock market is better but if you do not then forex.

    Stock market seems to be easier but if you don’t have at least $25k in your account then you can only make 3 day trades a week. While forex; you can have $100 and make as many trades per day as you’d like, plus the market is open 24 hours a day.

    So in my opinion, the forked market is a better way to make money and learn.

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