Most of us still prefer stock trading. I guess I understand their viewpoints. No doubt, stock trading is seen as a more conservative approach to build your wealth. Even if you are losing money in a particular stock, all you have to do is forget about it and look at your portfolio again years later. However, this is not a good approach investing. At times, if you dont cut your losses early, your stock may be worth pennies years later. By holding on to a losing position, you cannot put your capital to work. Eventually, you compromise on your annual portfolio return if you hold on to losing positions without sound justification.
Forex market is another new playground for the investors. You heard from traders wiping out their accounts in a day, likewise, there are those who make multiples of their capital in a day. If you know and respect their risk of trading, forex trading and be safer than stock trading. In fact, forex market is a 24hours market, it is also the largest market in terms of trading volume. Hence, traders have more opportunities in the market and there is greater liquidity in comparison to stock market. Forex trading is also margin trading. It suits people like me who have less capital to work with. You can even start to trade with just 100usd(not advisable) and enjoy leverage many times of equity.
Personally, I prefer forex trading compared to stock trading. For those who are still dealing with stocks, you can get some experience on forex trading by using a demo account first.
