Features that helps forex trading to edge past stock trading
With popularity of the internet growing rapidly, one common query that comes to the minds of a majority of them, say, 90 percent of them( the rest 10 set aside as exceptions), would be, how could i make some fast cash on the internet without much hassles or, is there any means out there, on the internet where, i could make good cash with minimum efforts? Why do we people think so! One would possibly argue that, we witness or our eyeballs crosses informations pertaining to success stories of people on the internet. As a result, as human beings, we try and emulate them and try to get where they are as fast as we could. Now, this is where, the downfall beckons us! One should realize that, the resources on the internet are never a get rich quick kind of thing and the success of people on the internet has been primarily due to the efforts they have put to reach there.
But wait! There are opportunities, definitely there are tons of opportunities out there for you to make some decent cash online provided, you be sensible enough and determined to make the most out of the resources out there. Now, i guess i have said enough to get through to what i want to discuss in here. Yes, it's nothing but trading stocks and currencies. Trading stocks or either currencies has really gained momentum over the years and it's quite interesting to note that, the amounts of money being traded on a day to day basis has witnessed a whopping increase over the years. I would be specific with what i meant when i get to the differences in stock trading and currency trading.
Now, back to basics of trading. To be sincere, when i started trading or when i first heard of this word trading, I thought trading currencies and stocks are pretty much the same. I guess, a majority of traders should have felt the same as what i did, when they were novice in trading too! But, for those amateur traders who aren't aware of that fact, let me tell you, stock trading and currencing trading or often referred to as forex trading are diverse in it's own class. Or, in other words they have got major differences between them. Let me brief up some of the significant features that makes forex trading a bit more preferred mode of trading than stock trading.
1) The significant stand out feature of forex market is that, it's a global market whereas stock trading is confined to local markets. Guessing what global and local markets are? Ok, global markets are those markets available world over while local markets are the ones that are restricted to a particular country. By saying forex market as a global market, it means, currencies of different countries could be traded within your parent country. While, in stock trading, you could only trade stocks that are available within a country's particular stock exchange.
2) Secondly, it's the humungous volume of money being traded on a daily basis. As per the average results, a whopping approximate of 2 trillion dollars are traded daily in forex markets in comparison to stock markets where, the daily trade volume accounts to several billion dollars which, in terms of volume is way lesser to those traded in forex markets.
3) Now then, as a trader, wouldn't you want the markets to operate 24 hours a day! Guess if that's the case with stock trading! No, it isn't! Stock markets enjoys rest on bank holidays and weekends which limits traders to trading 5 days a week. Whereas, forex markets are the hard working lot. Traders could trade currencies 24/7 a week. However, this mode of working is due to the fact that, different countries have got varying time zones. So, in order to accomodate all the countries, forex markets have got no other option other than being open for 24 hours in a day. Something else to take note of is, since, as earlier said, stock trading is confined to a particular country, shares of companies or businesses within the country could only be bought in comparison to forex markets where, currencies of any country could be traded at any time.
So, the above said are some of the significant differences between stock trading and forex trading. However, choosing the mode of trading totally depends on the mind of the trader whether, he/she wants to makes profit by either trading currencies or trading stocks. In any case, both modes has got uniqueness of it's own and the credentials to bring out the successful trader in you.
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