Stock market is better | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

A better Editor for mql is available. 100x better than MetaEditor 20 replies

Broker needs to do better, much better 4 replies

How close does a stock CFD match the underlying stock? 3 replies

Better momentum and better Sine wave indicator 0 replies

Is Better still better? 1 reply

Attachments: Stock market is better
Exit Attachments

Stock market is better

  • #1
  • First Post: Jan 30, 2009 9:21am Jan 30, 2009 9:21am
I don't know why people (specially newbies) keep trying to find a system and they keep losing money and more money.

Why don't try the stock market instead? It's A LOT easier and not SO VOLATILE like FOREX.

Everyone is trying to sell you FOREX and you see FOREX ads EVERYWHERE... Just use common sense and your head guys.. if it was that easy, everyone would be doing a lot of money.

The truth is that 95% of people in FOREX, lose money.

The stock market is more serious. And if you are serious about investing, you will never enter FOREX, but the Stock market instead.

The only reason we see so many Forex Wanna Be guys, is because there is almost no filter to enter Forex.

Well, I guess I must change my nick to StockDude now, lol... I was there (newbie and forex wanna be), but I learned the lesson.

Just my two cents.
Why do we fall? "So we can learn to pick ourselves up."
  • #2
  • Jan 30, 2009 9:37am Jan 30, 2009 9:37am
Ah right, thanks, I was wondering which one you thought was better. Glad we finally got it cleared up. Good to see you put up some really well thought out arguments too. Hang on, not so volatile - which stock market have you been watching? And who says volatility is a bad thing? But it is much easier, eh what - easier? How is that exactly? Investors in stock markets do well in bull markets but generally give all their winnings back and some in bear markets. An estimated 40% of volume traded on the LSE is based on inside information. Unless you've got some then it isn't a level playing field. Reduced volume means stock markets are more easily manipulated too. But ultimately a chart is a chart and if you can trade one then you should be able to trade another.

But it is 'more serious' - that is logic I can not argue with....... because I do not even understand what the F*&^ it is you are talking about. Money is money, it's all serious pal.
  • #3
  • Jan 30, 2009 11:35am Jan 30, 2009 11:35am
He actually right, there are more opportunities in stocks, simply because there are more markets. He is also right about the lack of 'filter' for entry into forex, open an account for $10, next thing we know we are being subjected to another '$10 to $1000000 in 2 weeks' thread, or all being told we are idiots by some little turd who had a good random week on demo.
The breaking of a wave cannot explain the whole sea.
  • #4
  • Edited 11:50am Jan 30, 2009 11:36am | Edited 11:50am
Forex's MARGIN makes it tougher, not its charts. In stocks, you have to deal with multiple stock groups and thousands of news stories, which makes tieing in these with a stock symbol's chart that much more difficult. In forex, you have one group and the news is much more limited, so everything's pretty much also on the chart. Granted, stocks and their charts look easier, because each stock's story is usually a little easier than forex's overall picture. But do stocks a while, and the above will perhaps make sense to you.

edit: I think that's what Mr. Craig just said. Sorry. Apparently the argument can go either way.
  • #5
  • Jan 30, 2009 3:34pm Jan 30, 2009 3:34pm
One thing is for sure. I have NEVER EVER known a Forex trader who does a decent PROFIT month after month. At least 3K per month for a period of at least 1 year.

But I do know people who do that and more in Stock trading.

That is also one main difference I learned in these 2 years of getting in touch with both markets.
Why do we fall? "So we can learn to pick ourselves up."
  • #6
  • Edited 3:51pm Jan 30, 2009 3:38pm | Edited 3:51pm
Quoting ForexDude
One thing is for sure. I have NEVER EVER known a Forex trader who does a decent PROFIT month after month. At least 3K per month for a period of at least 1 year.

But I do know people who do that and more in Stock trading.

That is also one main difference I learned in these 2 years of getting in touch with both markets.
Man you live in a small world. I know several, including myself.

BTW one market is not better than another, just different. I trade Stocks and bonds for my IRA, (longer term) and I trade FX daily and I trade futures daily. I do not trade from charts, I trade consolidation areas off of Support and resistance. OK I do have a 1 minute chart up with nothing on it to see flow
  • #7
  • Jan 30, 2009 4:03pm Jan 30, 2009 4:03pm
Quoting ForexDude
One thing is for sure. I have NEVER EVER known a Forex trader who does a decent PROFIT month after month. At least 3K per month for a period of at least 1 year.

But I do know people who do that and more in Stock trading.

That is also one main difference I learned in these 2 years of getting in touch with both markets.
Let me help you with that one.

I opened a long on GBPUSD at 1.39112 on 2 mil lot size and its still open, 550+ pips. Also Long on GBPJPY at 124.702 which is 550+ pips too. FYI that's 4 days for both of these trades.

People need to just learn that there is trades that you can be so secure about and trade many units and make huge profits, instead it has to have 30 indicators for them to think its good. If I posted how I trade in the forum it wouldn't get a very big response.
  • #8
  • Jan 30, 2009 4:43pm Jan 30, 2009 4:43pm
I know where you can meet, trade along side and learn from of dozens of successful FX traders and become a successful trader yourself within 3-6 months,if anyone wants to know where PM me.

And there is no comparison between FX and Stocks that could convince me Stocks are better. Let's see.
1)smaller investment to get started(try daytrading with a $1000 in your account)
2)There are no Madoffs, Enrons or greedy execs to screw you in FX
3)the market is open from sunday afternoon till friday afternoon(try trading NYSE at 3AM)
4)the leverage is huge(try making $500 trading stocks in one week using $1000 to start off the week. I just did it with FX)
5)the FX market is immune to Recession(people stop investing in stocks during a recession which drcreases volume and liquidity)
  • #9
  • Jan 30, 2009 6:06pm Jan 30, 2009 6:06pm
Quoting jaws810
I know where you can meet, trade along side and learn from of dozens of successful FX traders and become a successful trader yourself within 3-6 months,if anyone wants to know where PM me.

And there is no comparison between FX and Stocks that could convince me Stocks are better. Let's see.
1)smaller investment to get started(try daytrading with a $1000 in your account)
2)There are no Madoffs, Enrons or greedy execs to screw you in FX
3)the market is open from sunday afternoon till friday afternoon(try trading NYSE at 3AM)
4)the leverage is huge(try...
@2) No but there are Bucketshops set up in Belize which are out to rip off your money. etc
@3) No professional trades the markets during low volume times (asian session)
@5) Volume and Liquidity decreased strongly in the FX Markets. What do you think causes the big swings we see nowdays?
  • #10
  • Feb 2, 2009 10:57pm Feb 2, 2009 10:57pm
Quoting jaws810
I know where you can meet, trade along side and learn from of dozens of successful FX traders and become a successful trader yourself within 3-6 months,if anyone wants to know where PM me.

And there is no comparison between FX and Stocks that could convince me Stocks are better. Let's see.
1)smaller investment to get started(try daytrading with a $1000 in your account)
2)There are no Madoffs, Enrons or greedy execs to screw you in FX
3)the market is open from sunday afternoon till friday afternoon(try trading NYSE at 3AM)
4)the leverage is huge(try...
#2 are actually good things. People made a lot of money shorting Enron.
  • #11
  • Feb 2, 2009 11:49pm Feb 2, 2009 11:49pm
Quoting ForexDude
The stock market is more serious. And if you are serious about investing, you will never enter FOREX, but the Stock market instead.
You admitted your own failing in this post. There is a huge difference between trading and investing. If you want to invest, I suggest you purchase muni bonds and be done with it. If you actually want to trade, commodities (including currencies) are the best place to do it.
  • #12
  • Feb 3, 2009 2:34am Feb 3, 2009 2:34am
you can learn far more far faster with forex than you can with stocks. and you can do so much cheaper.

and i'm pretty sure that 95% losers statistic also applies to day traders.
  • #13
  • Feb 3, 2009 7:14am Feb 3, 2009 7:14am
I traded CFDs (contracts for difference) for several months before I discovered forex. CFDs allow some decent leverage (up to 100:1 on indices), and you can use them trade stocks and indices, from intraday timeframes upward, taking both long and short positions with equal ease. UK based brokers like CMC Markets or IG Index provide comprehensive charting/on-line trading platforms similar to MT4 or TradeStation, with free live data feeds and testing facilities, for stocks and indicies on all of European, Asian, and American markets.

In my experience, traditional indicators work better with stocks than with forex; after all, that's the market that they were originally designed for. Forex seems to require more 'specialist' market knowledge, and is more complex in some respects. For example, when you buy/sell a stock, you have only one company to consider, but a forex pair reflects the perceived strength of two nations' economies, relative to each other. Longer term, forex tends to revert to a mean, partly because government intervention tends to redress imbalance in a nation's economy. (For example, I might buy a stock today at 50c, and in two years time it might be worth $3.00. NZDUSD is currently 50c. When will $1 NZ ever be worth $3 US? LOL). The stock market is almost completely speculative in its nature; forex includes large 'commercial' transactions; IMO greater diversity of participant objectives = greater randomness in price movement.

Forex is a continuous 24 hour market, while stocks tend to have overnight gaps and spikes. Hence there are more candle patterns (islands etc) available for consideration in stocks. With forex, there is greater liquidity, and hence less opportunity for slippage, while with stocks, smaller companies' prices can arguably be more easily manipulated. Volume can be a very useful indicator with stocks, and level II (market depth) data is available with many CFD brokers; neither of which is available in forex (at least to the retail trader – an information type that I really miss ). Stocks can give you hundreds of candidate companies to consider, in different industrial sectors, while forex is limited to pairs involving a few major currencies, i.e. greater opportunity (especially for hedging) versus simplicity of analysis, take your pick.

News announcements are more cyclical with forex, and can be more easily scheduled into one's plan, even to the point where there are specialist news traders. Stocks are more frequently subject to 'unexpected' news.

From what I recall, there was very little evidence of broker manipulation or 'cheating' with CFDs, or at least the market-maker that I used.

Forex markets have less structural bias: you can use much the same strategy to take long or short positions (a short position is the equivalent of taking a long position on the inverted pair). Whereas with stocks, bear movements tend to be sharper than bull ones (panic is a greater motivator than greed, perhaps!) And spot forex offers a simpler cost model (spread and swap) than CFDs, where there were daily adjustments for interest, adjustments for dividends, spreads and commissions, premiums for guaranteed stoplosses, and so forth.

I believe that gains from spread betting (a viable alternative to CFDs) remain tax-free, for UK residents.

No doubt there are other differences between stocks and forex that I haven't thought of. As to which market is better to trade: different strokes for different folks, each to his own.
  • #14
  • Feb 3, 2009 8:03am Feb 3, 2009 8:03am
Quoting ForexDude

The stock market is more serious. And if you are serious about investing, you will never enter FOREX, but the Stock market instead.
you are correct mate

learn how to trade stock is good for beginner traders

if you can't make money from stocks in 6 months, then don't ever think to trade in the 100 times leverage system

ok now the reasoning

when buying a stock (not cfd) we own some percentage of a company. it is an asset you can keep for the rest of your life or sell when you need some money. I still own stocks that my parents bought 20 years ago and the company still paying me dividends

when buying say pound/usd from the bucketshop you will also earn some interest, and in order to make it attractive you have to use high leverage on your limited account. how far can you manage the drawdown?

oh and of course you can play forex with smaller leverage or go directly on the spot, but at the lower leverage stocks' ROI is much better than forex at the SAME timeframe

and also btw, stocks is forex's cousins. I dunno how many of you are techies, but anyone play technical on October and November 2008 and made some profit? if you did than you should be a very lucky being. the VIX at that time was at 70 - 80. death for the intraday traders.

thus, fundamentally stocks are easier than forex, and again if you can't make a profit from the stockmarket ......
  • #15
  • Edited 12:45pm Feb 23, 2024 8:42am | Edited 12:45pm
Update - abridged of full post
Its hard not to conclude that what often passes for trading information / education / exploration amounts to playing a game of chart glamorisation, mesmerizations and hypnotization with questionable application. [ see post #35 this thread - the link does not work correctly - https://www.trade2win.com/threads/te.../#post-3184254

In the hope of effecting redress - within limited scope - on Sun 1 Jan 2023 I posted a number of charts (free TradingView) which can be found at post #13,358 https://www.trade2win.com/threads/ch...8#post-3242264

As the charts were accesses on Sunday 1 Jan 2023 all referenced close prices are for last market close 2022.
As update, the close price for Friday 9 February 2024 is selected.
Historical close prices can be check at Yahoo Finance under the Historical Data Tab.

For charts and additional information see full post - link below.

LOSERS & WINNERS

Note: I have used the close price and not the adjusted close price in calculations. The difference between the two is minimal and does not compromise integrity of the update objective.

LOSERS

  1. Alibaba Group Holding Limited (BABA) Strong Buy: 1 Jan 2023 close price: 88.09 - 9 Feb 2024 close price 72.02 -18.24 %
  2. Baidu, Inc. (BIDU) Buy: 1 Jan 2023 close price: 114.38 - 9 Feb 2024 close price 105.69 -7.60 %

WINNERS

  1. Amazon.com, Inc. (AMZN) Strong Buy: 1 Jan 2023 close price: 84.00 - 9 Feb 2024 close price 174.45 107.68 %
  2. Salesforce.com, inc. (CRM) Strong Buy: 1 Jan 2023 close price: 132.59 - 9 Feb 2024 close price 291.30 119.70 %
  3. Meta Platforms, Inc. (META) Buy: 1 Jan 2023 close price: 120.34 - 9 Feb 2024 close price 468.11 288.99 %
  4. Tesla, Inc. (TSLA) Buy: 1 Jan 2023 close price: 123.18 - 9 Feb 2024 close price 193.57 57.14 %
  5. Taiwan Semiconductor Manufacturing Company Limited (TSM) Strong Buy: 1 Jan 2023 close price: 74.49 - 9 Feb 2024 close price 133.11 78.70 %
  6. Uber Technologies, Inc. (UBER) Strong Buy: 1 Jan 2023 close price: 24.73 - 9 Feb 2024 close price 70.91 186.74 %

Full post see - https://www.trade2win.com/threads/ch...6#post-3258045

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #16
  • Edited 6:52am Feb 24, 2024 6:37am | Edited 6:52am
Quoting birdt
Ah right, thanks, I was wondering which one you thought was better. Glad we finally got it cleared up. Good to see you put up some really well thought out arguments too. Hang on, not so volatile - which stock market have you been watching? And who says volatility is a bad thing? But it is much easier, eh what - easier? How is that exactly? Investors in stock markets do well in bull markets but generally give all their winnings back and some in bear markets. An estimated 40% of volume traded on the LSE is based on inside information. Unless you've...
Its the old adage that 'you cannot make money in Forex', often spoken by stock traders, whose strategy amounts to buy the dip with little to zero leverage, and hold for however long it takes. And lets face it, anyone exercising that strategy anytime since the 1940's, has generally made money. But it just not something that can be done in Forex. The only way to trade Forex, is shorter term swing trading, on high leverage, with Stop Losses which must be honoured, otherwise you will blow up your account sooner rather than later. Had those 95% of losing Forex traders, simply took the capital that they have drip fed to their brokers over the years and bought major stock market indices with it instead, they would be well in the black, as opposed to tens of thousands down.

As for shorter term swing trading in stocks.....FUCK THAT! Who needs to deal with gap downs against your position due to overnight news events or whatever. Which leaves day trading in stocks. Never tried it. But apparently very popular in the US (where retail traders can't easily trade Forex), and rumour has it, it is much easier than day trading Forex. Can't comment on that, as I have never tried it, and I am sure even if it were easier, it would still be 'different', and another learning curve for the trader to overcome.
  • #17
  • Mar 14, 2024 12:00am Mar 14, 2024 12:00am
Buying simple PUT/CALL options on stocks/indexes is the way to trade the stock market short term with a lot less capital than what is needed for the purchase of the stock. QUICK OPTIONS LESSON: one options contract controls 100 shares of stock, at a fraction of the stock price. You buy a CALL when you think price is going to go up, and a PUT when you think price will come down. You determine WHEN you think this will occur by, and that is your expiration date. You choose the starting price (stock is at $200 and you think it will go to at least $220, you can choose maybe $200, $205, $210, $215 or $220 to buy at) and that is the "strike price". Say you choose $210 strike price with an expiration 2 weeks out, the Ask price may be $2.30/share ($230 for one contract, $2300 for 10 contracts, etc.). You buy 10 contracts at $2300, so you are controlling 1000 shares of the stock. Let's say it goes to $215 sometimes during that 2 weeks. The price of the share would go from $2.30/share to roughly $8/share. That would mean that on your $2300 trade, you would make roughly $5700 net profit (not gross). By contrast, if you would have purchased 1000 shares outright, it would have cost you $200,000 and you would have made $15,000 profit. Sounds great!.... but percentage-wise, you would have only made 7.5% on your investment, but with options, you would have made 248% on your investment (and that percentage is the same if you buy 1 contract or 5 or 80).

Here is a real life example:
KBM (Kimberly-Clark) closed at $127.90 today. Let's say you think price is going to go down, so you want to buy a PUT. You want to give it some time to go down, so you buy a PUT with an expiration date of March 28. You decide to buy the PUT with the "strike price" (starting point) of $128, so the more it goes down below that, the more you make. The Ask price was $1.70/share ($170 for one contract, $1700 for 10 contracts, etc.), so you decide to buy 10 contracts for $1700.
(I will update this trade in real time over the next several days to show how much money you would make.)

Forex can make you good money, but you really need to 1) be consistently good at it, 2) Trade at least mini but preferably full sized lots, 3) take advantage of something higher than 50:1 leverage.
  • #18
  • Mar 14, 2024 1:18pm Mar 14, 2024 1:18pm
Quoting moneymaker2
Here is a real life example: KBM (Kimberly-Clark) closed at $127.90 today. Let's say you think price is going to go down, so you want to buy a PUT. You want to give it some time to go down, so you buy a PUT with an expiration date of March 28. You decide to buy the PUT with the "strike price" (starting point) of $128, so the more it goes down below that, the more you make. The Ask price was $1.70/share ($170 for one contract, $1700 for 10 contracts, etc.), so you decide to buy 10 contracts for $1700. (I will update this trade in real time over the...
Well, price did what you expected it to do and it went down. The option you paid $1.70 for was worth $3.50, so you more than doubled your money. So you sell the options and you receive $3500 for your 10 contracts, for an $1800 net profit. Not a bad way to make a living.....
  • #19
  • Mar 14, 2024 10:41pm Mar 14, 2024 10:41pm
Quoting ForexDude
I don't know why people (specially newbies) keep trying to find a system and they keep losing money and more money. Why don't try the stock market instead? It's A LOT easier and not SO VOLATILE like FOREX. Everyone is trying to sell you FOREX and you see FOREX ads EVERYWHERE... Just use common sense and your head guys.. if it was that easy, everyone would be doing a lot of money. The truth is that 95% of people in FOREX, lose money. The stock market is more serious. And if you are serious about investing, you will never enter FOREX, but the Stock...
buy and hold sp500 is the one way to be fair for stocks. The same can be done with forex but only for carry trade purpose.
Trading is gambling. So gamble responsibly.
0 traders viewing now