Stock Market

Profits can also be made in the stock market so what makes the Forex better?
There are many characteristics in which the stock market and the Forex market are distinct from each other. Among their biggest differences are the following:

1. Market Hours
In the US, the New York stock exchange opens at 09:30AM and closes at 04:00PM local time. As a result, if you are in another timezone, your available personal time for trading may not be ideal since the market may not be open. On the other hand, the Forex is open 24 hours a day and closes only on Saturdays and Sundays allowing to traders to participate whenever they want.

2. Trading Possibilities
In the stock market, traders must research on thousands of companies that offer shares before they can choose confidently which one to purchase. It is nearly impossible to analyze the issues surrounding each company to know what opportunities they can provide every time you want to make a trade. It is considerably easier for the Forex where trading is concentrated around a few currency pairs. The trends of these pairs can be studied on your own since they are mostly influenced by large economic news and events that are covered by numerous media outlets around the world.

3. Profit Opportunities
The stock market can be heavily impacted by times of recession. During these times when shares go down, traders face losing all their profits if they did not foresee it and engage in bearish trades in advance. The rise and fall of stock markets is cyclical and each stage may last from a few months to several years. The Forex is much more stable in that it gives traders a chance to profit even when currencies are going down. Here, traders simply buy currencies they think will rise and sell those they think will fall.

 

Despite the many advantages of Forex, however, it still does not guarantee that you will make constantly make money by trading. Just like the stock exchange, the risk of losing all your investments is present.