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Attachments: Why the stock market is the easiest market to trade
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Why the stock market is the easiest market to trade

I trade forex but invest in stocks. I see trading forex as another source of income (besides my primary job) to add to my investment account (which I buy shares and hold long term).

Forex can't be invested long-term because if you look at a long term chart (monthly) it has no direction and usually is mean-reversion. Whereas stocks is long-biased over the long-run. The wealthy buy shares and hold, and its also the only way to become extremely wealthy in the market. I havent seen anyone become billionaires from trading forex.

But dont make the mistake of day trading stocks, short term prices are manipulated and affected by large orders especially small caps.
Agree with OP. Stock prices are still set to go higher as long as the world continues to develop and grow in population. Over 50% of earnings from the S&P 500 are from OTHER countries. The US stock market is full of multinational companies and stocks typically pay dividends.

You should always try to avoid shorting stocks. It is not a zero-sum game.
Quoting 4xPIPAHOLIC
I will give my 2 cents (my opinion form my experience). There is no market manipulated like the equity market, if anyone states otherwise they have not traded all the markets for a good period of time. Please do not fool yourself. Pumps and dumps and the whole market itself is manipulated by the 'SPECIALISTS" ... every single day. I stared trading the equities 20 years ago and about 8 years ago I started trading the FX also. It is way easier to manipulate a stock than an fx pair, let alone if you keep overnight you might wake up to a crazy gap in...
Agree, easier to spot smart money action in stocks, and stocks tend to move either up or down, Forex swings between ranges too much if you know what I mean.
The stock market EASIER to trade??

REALLY???

Try shorting a stock and see how "easy" it is. The broker will actually try to talk you out of it ( I speak from personal experience), tell you that you can only short on an uptick, and that you must borrow money from the brokerage ( with interest, of course). Who needs that kind of hassle! Getting into and out of a currency trade is a LOT easier.
Stock market is way harder to trade than forex. Newbies think it's easy because we've been in a full on bull market for so long. They think it just goes only one way.

Forex is the easiest market to trade.
Quoting miketoll
Hello, I want to discuss why stocks are easier to trade than forex or other derivates. Please spare me with pseudo-forex-advantages like 24h market (no one trades 24 hours; beside that the market is volatile only in certain times), smaller trading universe (actually I prefer a lot of charts...), bigger market (who cares?), smaller fees (every looked at the commissions of IB?) and liquidity (look at apple, google and co. here you have more liquidity you can dream off...). I claim that stock markets are easier to trade for following reasons: 1. The...
A bit flawed, really, and is nothing more than bias. And, that's fine. I have been on both equity desks and fixed income (FX and rates). There are plus and minuses to each.

1. And upwards drift is find and dandy, but that all comes to an end. The trend is your friend.. until the very end. You won't be saying that once central banks change course.

But take a look at GBPUSD, recently. That's has been a great carry and hold. Also, either markets can have high turnover velocities. I made a killing trading 1-2,000 round trips daily in AAPL, TSLA, NFLX, etc.

2. Trading is ALWAYS a zero-sum game. Someone always wins, someone always looses. There's no halfway point. And if you have traded stocks legitimately, you cannot tell me that fundamentals in either forex or stocks are not highly subjective to the markets' perception?

AMZN continued to bleed cash, yet traders continued to bid prices higher. 80% of biotechs make NO revenues, yet the index is up over 600% since 2009.

When it comes down to it, it really comes down the trader's perception.
When the facts change I change my mind, what do you do sir
i agree, stocks trading is different than forex, it harder i beleive but for the long term the rewards are higher
Quoting gravitist
The stock market EASIER to trade?? REALLY??? Try shorting a stock and see how "easy" it is. The broker will actually try to talk you out of it ( I speak from personal experience), tell you that you can only short on an uptick, and that you must borrow money from the brokerage ( with interest, of course). Who needs that kind of hassle! Getting into and out of a currency trade is a LOT easier.
You should trade cfd's, short whenever you want and with leverage
I agree, best of both worlds if you can trade CFD's in your country. You can trade the stock market or FX with the leverage.
I can add a couple of reasons why stock market is easier like no swap (positive too but there are dividends on some stocks), actually working volume and cleaner charts.
Quoting miketoll
Hello, I want to discuss why stocks are easier to trade than forex or other derivates. Please spare me with pseudo-forex-advantages like 24h market (no one trades 24 hours; beside that the market is volatile only in certain times), smaller trading universe (actually I prefer a lot of charts...), bigger market (who cares?), smaller fees (every looked at the commissions of IB?) and liquidity (look at apple, google and co. here you have more liquidity you can dream off...). I claim that stock markets are easier to trade for following reasons: 1. The...
all depends on your hold time... give intraday stocks a go or picking tomorrows move with day to day gaps to work into your RR.

if you had bought audusd in 2003 held till now you would be sitting very pretty as you would be if you bought a lot of stocks, CBA for example. or GOLD...

So I don't agree stocks are easy at all. but when you look at it from a 10- 20 year hold time alot of markets have done very well.

I found day to day options trading over stocks bloody hard. Gaps can really ruin you. This was with options could not imagine trying to do it on CFDs over stocks.

my 2Cents
Quoting Dovilo
I can add a couple of reasons why stock market is easier like no swap (positive too but there are dividends on some stocks), actually working volume and cleaner charts.
if you trade stocks on margin you have day to day funding / int to pay.

Vanilla stocks are way cheaper if you buy and hold. plus you can get paid dividends.
I recently switched from FX to stock indices, i must say i find them much easier to trade then FX.

One of the reasons i find indices easier to trade is the fact that there is less reaction to daily fundamentals.
In FX it is not uncommon for pairs to get huge spikes and being back to the price which it was before the release in just a matter of minutes.

I have a lot less stress trading stock indices intra-day than with FX.
Quoting Dkam
I recently switched from FX to stock indices, i must say i find them much easier to trade then FX. One of the reasons i find indices easier to trade is the fact that there is less reaction to daily fundamentals. In FX it is not uncommon for pairs to get huge spikes and being back to the price which it was before the release in just a matter of minutes. I have a lot less stress trading stock indices intra-day than with FX.
I wish that was true on the DAX
Quoting LuKa12
{quote} I wish that was true on the DAX
Well it is my experience but I am only trading indices for a couple of weeks of course.
I find the DAX one of the easiest instruments to trade
Very nice and strong moves with very clear entry and exit points.
Let's hope it stays this way and doesn't go away after a few more weeks!
Pros for the stock market - Super easy because volume is real and insider trading must be reported. Line up technicals to recent insider trading and voila!

Cons for the stock market - Any news is amplified beyond reason. After-hours trading is a nightmare for retail traders.

Major differences - Forex has a MUCH larger sample size, therefore the technicals are more stable. Forex is cheaper per transaction. Forex provides higher daily profit because of better liquidity...in and out with large trade size very easy.

Personality - If you are a buy and hold sucker, trade stocks. If you are a take the money and run bandit, trade Forex. If you are a little of both, trade stock options.
You cannot be extraordinary by being normal
Quoting gravitist
The stock market EASIER to trade?? REALLY??? Try shorting a stock and see how "easy" it is. The broker will actually try to talk you out of it ( I speak from personal experience), tell you that you can only short on an uptick, and that you must borrow money from the brokerage ( with interest, of course). Who needs that kind of hassle! Getting into and out of a currency trade is a LOT easier.
You are definitely not working with a good broker or a prop firm. I can tell by what you are saying...."try to talk you out of it" lol.
Sorry but this is trading and it is instant...fractions of a second. You have to get a broker for day trading that has the stocks to short,
out of 100 stocks that I short maybe I cant short 2-3%, but all the big names are shortable.
All I did was yesterday and most of the days lately was short.

4x
Quoting 4xPIPAHOLIC
{quote} You are definitely not working with a good broker or a prop firm. I can tell by what you are saying...."try to talk you out of it" lol. Sorry but this is trading and it is instant...fractions of a second. You have to get a broker for day trading that has the stocks to short, out of 100 stocks that I short maybe I cant short 2-3%, but all the big names are shortable. All I did was yesterday and most of the days lately was short. 4x
i think some brokers hate having to borrow stock to supply your short.
Quoting LuKa12
{quote} i think some brokers hate having to borrow stock to supply your short.
Brokers do not borrow the stock....they have it in there inventory of clients that hold long term.
If they do not have it they will not borrow it for you, you will not be able to short it.
That is why it is so important you go with a big broker when you are planning to short/day trade stocks.

4x
Quoting gravitist
The stock market EASIER to trade?? REALLY??? Try shorting a stock and see how "easy" it is. The broker will actually try to talk you out of it ( I speak from personal experience), tell you that you can only short on an uptick, and that you must borrow money from the brokerage ( with interest, of course). Who needs that kind of hassle! Getting into and out of a currency trade is a LOT easier.
YOu may want to check the "uptick rule" on shorting which was applied after the flash crash... That is actually a rule
If Santa trusts me, why can't you?
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