Forex Vs Stocks
Right now, forex trading is the most popular home based business. Forex trading is the recession proof answer to the today’s stock market crisis. Anyone can trade forex now from home by going online. Do you know you can trade forex with a forex robot on autopilot?
Forex market is quite different from the stock market. The stock market is less liquid as compared to the forex market. Stocks were traditionally seen as long term investments, where people buy stocks or a group of stocks in mutual funds and wait for them to appreciate and build in their retirement accounts. By using a proven, tested and simple forex system, you can recoup your losses no matter what the condition of the economy.
Forex markets are open 24 hours, five days a week except on weekends. You can trade forex online anytime of the day. On the other hand stock markets are open only from 9 AM to 5PM. After the stock market closes, you have no way to buy or sell a stock.
Forex trading is a highly liquid market. Most of the participants in the forex markets are either hedgers or speculators. Big institutions are looking for hedging their forex exchange risk whereas small traders are looking for speculating opportunities and willing to take on risk. Stocks are considered to be a long term investment.
In the US stock markets there are more than 50,000 stocks listed on the different stock exchanges. As compared to that in forex markets, mostly five major currency pairs are traded: USDEURO, USDGBP, USDCHF, USDJPY, USDASD.
Forex trading offers you the advantage of lower trading costs as compared to stock trading. In forex trading, there are no commissions, only the spread between the bid/ask price that you have to pay. In stock trading you have a pay a commission to your broker per trade.
During the year 2008, investors have taken a severe beating in the stock markets. This is the worst bear market after 1929. Even blue chip stocks could not weather the financial storm. Many people lost more than 70% of their retirement accounts during 2008.
There is a bear market in stocks right now. This bear market may take a few more years to recover. On the other hand, forex markets are always bullish. SInce, currencies are always traded in pairs. If one currency loses, the other currency gains.
Forex markets are huge. They dwarf the size of all the stock exchanges of the world combined. Daily $3.2 trillion get transacted in the currency markets. Currency markets are so big that no one has the ability to manipulate them or control them. Not even, the governments or the central banks. Even FED cannot control dollar.
Now, most of the people are wondering how they can recoup their losses in the stock market crash and build their retirement accounts again
Forex trading is the answer. Many people are afraid of forex trading and think it to be too risky and difficult. No doubt, it is for those who do not try to educate themselves and learn from others. But if you have the discipline and commitment, within a few months you can become a successful forex trader.
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