Nov
27
Will Mr. Geithner explain to Barack Obama that major announcements are not to be made during trading hours?
Filed Under Elections | 20 Comments
Nov
22
should i sell or hold on to my 100 shares of cintas stock down 6.67% in after hours luck or skill?
Filed Under Investing | 4 Comments
57rider wrote:
a few days ago i asked about luck and skill in stock trading i bought 100 shares of cintas (ctas) at about 40.00 i knew they were having a webcast after the market closed today. during the day it rose about 1.00% to 40.50, i thought about selling it thinking the webcast would have bad news. well i kept it and bad news came it dropped 6.67% in after hours trading.after reading that they had 37 consecutive years of growth in sales and earning to date ,and they had rcently raised their dividends and all that good stuff their share price is now 37 and change. shall i sell my 100 shares tomorrow to cut my losses or hold on to them for the longer term. i have alot of questions about stock trading but will stop here for today.if you remember my other question i would like to say thanks for all the great answers
How to Lose Weight
a few days ago i asked about luck and skill in stock trading i bought 100 shares of cintas (ctas) at about 40.00 i knew they were having a webcast after the market closed today. during the day it rose about 1.00% to 40.50, i thought about selling it thinking the webcast would have bad news. well i kept it and bad news came it dropped 6.67% in after hours trading.after reading that they had 37 consecutive years of growth in sales and earning to date ,and they had rcently raised their dividends and all that good stuff their share price is now 37 and change. shall i sell my 100 shares tomorrow to cut my losses or hold on to them for the longer term. i have alot of questions about stock trading but will stop here for today.if you remember my other question i would like to say thanks for all the great answers
How to Lose Weight
Nov
22
Time of Day in Forex Trading
Filed Under Currency Trading | Leave a Comment
Justin Owen wrote:
One of the most important highlights of the forex market is that it is a 24 hour market.
Trading never stops, except on weekends of course. As the sun moves from one part of the world to another, so does action in the forex market.
This is a key factor to consider when designing a forex trading system or method. Depending on the period of the day you are trading in the market behaves differently.
Let’s look at some charts that will help you better understand this issue.
The following is a 5 minute bar chart of the EUR/USD pair. What is the dominating characteristic in this chart?
***chart***
Not hard to spot. Here we can see that the pair is simply moving sideways hence forming a range. More importantly, you can clearly see that the pair is moving not more than 7-8 pips from side to side. So, not only does the pair move in a range,
but a narrow range.
Why is this? Why is the EUR/USD moving in such a narrow range? Very simple question for a very simple answer: This is because the above chart represents market action that happened within the Asian session. It is no a rule written on stone, but as forex traders we know that the Asian session means low volatility and sometimes liquidity. The natural outcome of this is that the market tends to range in this session.
Now take a look at the following chart and spot the important difference between the two:
***chart***
As we can see here there is clear volatility taking place. The pair moves from about 1.2990 to 1.2927 as illustrated in point A.
This is more than a 60 pip swing. Point B shows us a 25 pip counter-trend move. Point C is the market action that occurred a few hours before what was illustrated in the first chart.
So, why is market action in points A+B so different from market action in point C? Simply because A+B occurred during the US session which is considered a very volatile session, especially if there are any important news announcements such as government reports. Again, point C occurred at the end of the US session and through the beginning of the Asian session.
What I wanted to achieve in this article is simple. When designing a forex trading system, specially a forex day trading system, take into consideration the markets different characteristics throughout the 24 hour trading day. For example, try to use a forex day trading systems in the US or EU sessions that focus on capturing swings; in the Asian session try to use range trading techniques.
Remember, being a successful forex trader requires not just a simple system but an understanding of many contributing factors. Time of day is one of these very important factors.
How to Lose Weight
One of the most important highlights of the forex market is that it is a 24 hour market.
Trading never stops, except on weekends of course. As the sun moves from one part of the world to another, so does action in the forex market.
This is a key factor to consider when designing a forex trading system or method. Depending on the period of the day you are trading in the market behaves differently.
Let’s look at some charts that will help you better understand this issue.
The following is a 5 minute bar chart of the EUR/USD pair. What is the dominating characteristic in this chart?
***chart***
Not hard to spot. Here we can see that the pair is simply moving sideways hence forming a range. More importantly, you can clearly see that the pair is moving not more than 7-8 pips from side to side. So, not only does the pair move in a range,
but a narrow range.
Why is this? Why is the EUR/USD moving in such a narrow range? Very simple question for a very simple answer: This is because the above chart represents market action that happened within the Asian session. It is no a rule written on stone, but as forex traders we know that the Asian session means low volatility and sometimes liquidity. The natural outcome of this is that the market tends to range in this session.
Now take a look at the following chart and spot the important difference between the two:
***chart***
As we can see here there is clear volatility taking place. The pair moves from about 1.2990 to 1.2927 as illustrated in point A.
This is more than a 60 pip swing. Point B shows us a 25 pip counter-trend move. Point C is the market action that occurred a few hours before what was illustrated in the first chart.
So, why is market action in points A+B so different from market action in point C? Simply because A+B occurred during the US session which is considered a very volatile session, especially if there are any important news announcements such as government reports. Again, point C occurred at the end of the US session and through the beginning of the Asian session.
What I wanted to achieve in this article is simple. When designing a forex trading system, specially a forex day trading system, take into consideration the markets different characteristics throughout the 24 hour trading day. For example, try to use a forex day trading systems in the US or EU sessions that focus on capturing swings; in the Asian session try to use range trading techniques.
Remember, being a successful forex trader requires not just a simple system but an understanding of many contributing factors. Time of day is one of these very important factors.
How to Lose Weight
Nov
16
dee9051 wrote:
There seems to only be sites for regular market trading hours quotes & charts. Are there any sites for historical quotes and “after hours charts” ???????
Dog Grooming
There seems to only be sites for regular market trading hours quotes & charts. Are there any sites for historical quotes and “after hours charts” ???????
Dog Grooming
Nov
16
Electricity Futures Trading -8 “Whys” And “Hows” Of Electricity Futures Trading!
Filed Under Finance | Leave a Comment
Abhishek Agarwal wrote:
There are some commodities that are essential for one and all, such as crude oil, gasoline, heating oil, propane, electricity and natural gas. These are sources of energy that the world cannot do without. Sensing this, the New York Mercantile Exchange (NYMEX) came up with the idea of transactions related to energy futures, base metals, propane, electricity, precious metals, heating oil, gasoline, natural gas and crude oil. But what it is most renowned for is, electricity futures trading.
To go into a more detailed commentary regarding NYMEX and electricity futures trading–
(1) The first question anyone would ask is, why is electricity being taken as an option for futures trading?
Electricity futures trading is prevalent because electriciy is a popular commodity among traders and investors. The prices never remain constant, they keep changing; generally, they are on the higher side. The last advantage is that electricity is something that is fungible (it can be exchanged or substituted).
(2) It is accepted by the trading community as a liquidity alternative to counter other stocks and bonds investments. So, a large number of people make a beeline to NYMEX. This exchange has the reputation of being a premier platform for transactions concerning precious metals and energy. It is after all, the largest global physical commodity futures exchange!
(3) NYMEX has an affiliate called PJM Interconnection LLC. Statistics reveal this to be the predominant global market for electricity, as more than 44 million clients have been involved with this company till date. Member firms of PJM have a capacity of 137,000 megawatts, or hold 1,000 generating units.
(3) Now, how does one exactly go about this business of electricity futures trading?
Transactions have to be conducted via a broker. And not just any broker, but one who has been recognized and certified by NYMEX as a series 3–commodity futures broker. The “right broker” has to be hunted out, and an account opened with him/her.
(4) Who can be classified as the “right broker”?
This person who represents the investor should be familiar with electricity futures trading, as well as have plenty of experience concerning transactions. It would be preferable to get a person whose focus is only on the electricity market. This ensures that the broker is an expert in this arena, plus time is saved by not diversifying into other areas. There is no conflict of interests between the broker and investor.
(5) Brokers can take up individual committments, work with smaller units, or work with big companies and institutions.
(6) After a particular broker has been selected by the investor, it would be advisable for both to get together ahd have a discussion regarding–what is his/her current financial status, the amount the investor is willing to put in/risk, the objective behind the investment, how much does the investor know about options and methods concerning futures trading, and so on.
(7) A first-timer would be well advised to go through investment options carefully before parting with his/her money. Also, an investor should avoid comparisons with others, since each commodity trading account is customized according to the individual’s requirements. No two accounts are alike.
(8) There are peak hours for electricity futures trading, when business is brisk. They are from 7 a.m. to 11 p.m. Midnight to 7 a.m. are considered as off-peak hours; trading is allowed even during this time. However, www.nymex.com is there to answer further questions if required.
Designer Handbags
There are some commodities that are essential for one and all, such as crude oil, gasoline, heating oil, propane, electricity and natural gas. These are sources of energy that the world cannot do without. Sensing this, the New York Mercantile Exchange (NYMEX) came up with the idea of transactions related to energy futures, base metals, propane, electricity, precious metals, heating oil, gasoline, natural gas and crude oil. But what it is most renowned for is, electricity futures trading.
To go into a more detailed commentary regarding NYMEX and electricity futures trading–
(1) The first question anyone would ask is, why is electricity being taken as an option for futures trading?
Electricity futures trading is prevalent because electriciy is a popular commodity among traders and investors. The prices never remain constant, they keep changing; generally, they are on the higher side. The last advantage is that electricity is something that is fungible (it can be exchanged or substituted).
(2) It is accepted by the trading community as a liquidity alternative to counter other stocks and bonds investments. So, a large number of people make a beeline to NYMEX. This exchange has the reputation of being a premier platform for transactions concerning precious metals and energy. It is after all, the largest global physical commodity futures exchange!
(3) NYMEX has an affiliate called PJM Interconnection LLC. Statistics reveal this to be the predominant global market for electricity, as more than 44 million clients have been involved with this company till date. Member firms of PJM have a capacity of 137,000 megawatts, or hold 1,000 generating units.
(3) Now, how does one exactly go about this business of electricity futures trading?
Transactions have to be conducted via a broker. And not just any broker, but one who has been recognized and certified by NYMEX as a series 3–commodity futures broker. The “right broker” has to be hunted out, and an account opened with him/her.
(4) Who can be classified as the “right broker”?
This person who represents the investor should be familiar with electricity futures trading, as well as have plenty of experience concerning transactions. It would be preferable to get a person whose focus is only on the electricity market. This ensures that the broker is an expert in this arena, plus time is saved by not diversifying into other areas. There is no conflict of interests between the broker and investor.
(5) Brokers can take up individual committments, work with smaller units, or work with big companies and institutions.
(6) After a particular broker has been selected by the investor, it would be advisable for both to get together ahd have a discussion regarding–what is his/her current financial status, the amount the investor is willing to put in/risk, the objective behind the investment, how much does the investor know about options and methods concerning futures trading, and so on.
(7) A first-timer would be well advised to go through investment options carefully before parting with his/her money. Also, an investor should avoid comparisons with others, since each commodity trading account is customized according to the individual’s requirements. No two accounts are alike.
(8) There are peak hours for electricity futures trading, when business is brisk. They are from 7 a.m. to 11 p.m. Midnight to 7 a.m. are considered as off-peak hours; trading is allowed even during this time. However, www.nymex.com is there to answer further questions if required.
Designer Handbags
Nov
14
Jim Brown wrote:
Investment traders use various styles of trading software to manage trades. Before some software is chosen, an investment trader has the option of downloading a demonstration version on the computer that is used for trading commodities with various commercial banking interests that are located around the world. The online trading platforms will play an integral part in all online trading practices, and many online investors prefer to use several types of software to manage trading accounts.
The online trading platforms that are used regularly by traders are streamlined to meet the needs of day traders. Other online investors prefer to use online trading platforms that are tailored to fit the needs of someone who trade futures on a regular basis. Foreign currency can be traded very easily with many countries and FOREX traders rely on the software to converse with traders on the other side of the world in a language that is unique and easily understood.
Other online trading software programs are perfect for online investors that concentrate on the options market. The options trading software can be transferred to any computer system or handheld device and operate smoothly at any time of the day or night. Most online trading platform software is provided with a 30-day trial attached, and the demonstration software operates in real-time environments to give online traders a feel of what the software is when the final software package is purchased at the end of the 30-day trial period.
Most online investors are accustomed to using online trading platforms that provide a wide variety of charts and graphs. These graphs can indicate the selling history of a certain stock, or the online trading platform software can give online investors the opportunity to access news and other useful information that can be very beneficial when trading large blocks of stocks or options at one time. The online trading platforms will provide online investors with alerts that investors use to examine portfolios.
These alerts serve as a safety net to investors whose stock prices have dipped and allow ample time for investors to make a trade in time to achieve a profit. Most investors enjoy the shielding that some online trading software provides. While the software gives an online investor direct access to make trades in a real-time environment, the online trading software platforms also provide investors with an online trading suite that provides a clear view of all trading activity. The alert system will show investors any trading issues that might cause some consternation with the trader if action is not taken quickly.
Many online investors use the online trading platforms as trading tools. These software programs can also provide savvy investors with information about which stocks, commodities, futures and options are the most popular during the trading day. When stock trades are ordered, online investors can verify all trades using parts of the trading software program that give investors the batch order entry. Any errors can be discovered before the trade orders are placed. These online trading platforms can be transported anywhere, which makes global trading a viable option that online traders take full advantage of during a 24-hour trading period.
Create Niche Video Sites
Investment traders use various styles of trading software to manage trades. Before some software is chosen, an investment trader has the option of downloading a demonstration version on the computer that is used for trading commodities with various commercial banking interests that are located around the world. The online trading platforms will play an integral part in all online trading practices, and many online investors prefer to use several types of software to manage trading accounts.
The online trading platforms that are used regularly by traders are streamlined to meet the needs of day traders. Other online investors prefer to use online trading platforms that are tailored to fit the needs of someone who trade futures on a regular basis. Foreign currency can be traded very easily with many countries and FOREX traders rely on the software to converse with traders on the other side of the world in a language that is unique and easily understood.
Other online trading software programs are perfect for online investors that concentrate on the options market. The options trading software can be transferred to any computer system or handheld device and operate smoothly at any time of the day or night. Most online trading platform software is provided with a 30-day trial attached, and the demonstration software operates in real-time environments to give online traders a feel of what the software is when the final software package is purchased at the end of the 30-day trial period.
Most online investors are accustomed to using online trading platforms that provide a wide variety of charts and graphs. These graphs can indicate the selling history of a certain stock, or the online trading platform software can give online investors the opportunity to access news and other useful information that can be very beneficial when trading large blocks of stocks or options at one time. The online trading platforms will provide online investors with alerts that investors use to examine portfolios.
These alerts serve as a safety net to investors whose stock prices have dipped and allow ample time for investors to make a trade in time to achieve a profit. Most investors enjoy the shielding that some online trading software provides. While the software gives an online investor direct access to make trades in a real-time environment, the online trading software platforms also provide investors with an online trading suite that provides a clear view of all trading activity. The alert system will show investors any trading issues that might cause some consternation with the trader if action is not taken quickly.
Many online investors use the online trading platforms as trading tools. These software programs can also provide savvy investors with information about which stocks, commodities, futures and options are the most popular during the trading day. When stock trades are ordered, online investors can verify all trades using parts of the trading software program that give investors the batch order entry. Any errors can be discovered before the trade orders are placed. These online trading platforms can be transported anywhere, which makes global trading a viable option that online traders take full advantage of during a 24-hour trading period.
Create Niche Video Sites
Nov
14
JR wrote:
Does that mean on Monday I will have purchased it at 24.18 or 24.67 assuming it stays at 24.67? Also what the heck does short selling mean?
How to Lose Weight
Does that mean on Monday I will have purchased it at 24.18 or 24.67 assuming it stays at 24.67? Also what the heck does short selling mean?
How to Lose Weight
Nov
11
David Smith wrote:
The forex (foreign currency exchange) market is the largest and most liquid financial market in the world. The forex market unlike stock markets is an over-the-counter market with no central exchange and clearing house where orders are matched.
Traditionally forex trading has not been popular with retail traders/investors (traders takes shorter term positions than investors) because forex market was only opened to Hedge Funds and was not accessible to retail traders like us. Only in recent years that forex trading is opened to retail traders. Comparatively stock trading has been around for much longer for retail investors. Recent advancement in computer and trading technologies has enabled low commission and easy access to retail traders to trade stock or foreign currency exchange from almost anywhere in the world with internet access. Easy access and low commission has tremendously increased the odds of winning for retail traders, both in stocks and forex. Which of the two is a better option for a trader? The comparisons of retail stock trading and retail forex trading are as follows;
Nature of the Instrument
The nature of the items being bought and sold between forex trading and stocks trading are different. In stocks trading, a trader is buying or selling a share in a specific company in a country. There are many different stock markets in the world. Many factors determine the rise or fall of a stock price. Refer to my article in http://www.i1also.com under stock section to find more information about the factors that affect stock prices. Forex trading involves buying or selling of currency pairs. In a transaction, a trader buys a currency from one country, and sells the currency from another country. Therefore the term “exchange”. The trader is hoping that the value of the currency that he buys will rise with respect to the value of the currency that he sells. In essence, a forex trader is betting on the economic prospect (or at least her monetary policy) of one country against another country.
Market Size & Liquidity
Forex market is the largest market in the world. With daily transactions of over US$4 trillion, it dwarfs the stock markets. While there are thousands of different stocks in the stock markets, there are only a few currency pairs in the forex market. Therefore, forex trading is less prone to price manipulation by big players than stock trading. Huge market volume also means that the currency pairs enjoy greater liquidity than stocks. A forex trader can enter and exit the market easily. Stocks comparatively is less liquid, a trader may find problem exiting the market especially during major bad news. This is worse especially for small-cap stocks. Also due to its huge liquidity of forex market, forex traders can enjoy better price spread as compared to stock traders.
Trading Hours & Its Disadvantage to Retail Stock Traders
Forex market opens 24-hour while US stock market opens daily from 930am EST to 4pm EST. This means that Forex traders can choose to trade any hours while stock traders are limited to 930am EST to 4pm EST. One significant disadvantage of retail stock traders is that the stock markets are only opened to market makers during pre-market hours (8:30am – 9:20am EST) and post-market hours (4:30pm – 6:30pm EST). And it is during these pre-market and post-markets hours that most companies release the earnings results that would have great impact on the stock prices. This means that the retails traders (many of us) could only watch the price rise or drop during these hours. Besides, stop order would not be honored during this times. The forex traders do not suffer this significant disadvantage. Also, a stock trader may supplement his/her trading with forex trading outside the stock trading hours.
Affordability
In order to trade stocks, a trader needs to have quite a significant amount of capital in his account, at least a few tens of thousands in general. However, a forex trader can start trading with an account of only a few hundreds dollars. This is because forex trading allows for higher leverage. A forex trader could obtain larger transaction compared to stock market. Some forex brokers offers 100:1, 200:1 or 400:1. A leverage of 100:1 means that a US$1k in account could obtain a 100 times transaction value at US$100k. There is no interest charge for the leveraged money. Stock trading generally allows for not more than 2 times leverage in margin trading. There are interest charges associated with margin trading.
Data Transparency & Analysis Overload
There are thousands of different stocks in different industries. trader needs to research many stocks and picks the best few to trade. There are many factors that affect the stock prices. There are much more factors that may affects stock price than foreign currency exchange rates. The forex traders therefore can focus on few currency pairs to trade. On top of that, most data or news affecting currency exchange rate are announced officially, scheduled and in a transparent manner. Retail forex traders therefore have better chances of success than retail stock traders.
Bear/Bull Stock Market Conditions
Forex traders can trade in both way buying or selling currency pairs without any restrictions. However, stock traders have more constraints to trade and profit in bear market condition. There are more restrictions and costs associated with stock short selling. In a bull market when the economy is doing well, stock traders have a high chance of profitability if they buy stock first then sell it later. Savvy forex traders however, could operate in all market conditions.
Trending Nature of Currency
Major currencies are influenced by national financial policies and macro trends This national financial policies and macro trends tend to last long in a certain direction, either in monetary expansionary (rate cutting) or monetary contractionary cycle (rate hiking cycle). Stock prices however tend to fluctuate up and down due to many factors, many of these factors are micro and specific to the stocks. Therefore forex traders can better exploit the trends in foreign currency markets that stock traders in stock markets. You may want to read Ride The Trend Strategy.
Regulation
Generally, most major stock markets are better regulated than forex markets. Therefore, traders need to be aware of this difference to stock markets. Fortunately, there are however many reputable forex brokers in the market. With prudence and proper research, it is not difficult to find a suitable reliable forex brokers. Refer to How To Find Forex Brokers for details.
Based on the above few points, forex trading seems to be a better trading option than stock trading, especially during these uncertainties in the global economy. During bull market condition, stock trading could be a viable alternative. A stock trader should definitely seriously consider supplementing their trading with forex trading. Forex trading enables a stock trader to exploit any opportunity arises during non stock trading hours, by trading in forex trading. Forex trading would also enable the stock traders to understand a more complete big picture of world economies operations and further enhance their stock trading skills.
Search Engine Placement
The forex (foreign currency exchange) market is the largest and most liquid financial market in the world. The forex market unlike stock markets is an over-the-counter market with no central exchange and clearing house where orders are matched.
Traditionally forex trading has not been popular with retail traders/investors (traders takes shorter term positions than investors) because forex market was only opened to Hedge Funds and was not accessible to retail traders like us. Only in recent years that forex trading is opened to retail traders. Comparatively stock trading has been around for much longer for retail investors. Recent advancement in computer and trading technologies has enabled low commission and easy access to retail traders to trade stock or foreign currency exchange from almost anywhere in the world with internet access. Easy access and low commission has tremendously increased the odds of winning for retail traders, both in stocks and forex. Which of the two is a better option for a trader? The comparisons of retail stock trading and retail forex trading are as follows;
Nature of the Instrument
The nature of the items being bought and sold between forex trading and stocks trading are different. In stocks trading, a trader is buying or selling a share in a specific company in a country. There are many different stock markets in the world. Many factors determine the rise or fall of a stock price. Refer to my article in http://www.i1also.com under stock section to find more information about the factors that affect stock prices. Forex trading involves buying or selling of currency pairs. In a transaction, a trader buys a currency from one country, and sells the currency from another country. Therefore the term “exchange”. The trader is hoping that the value of the currency that he buys will rise with respect to the value of the currency that he sells. In essence, a forex trader is betting on the economic prospect (or at least her monetary policy) of one country against another country.
Market Size & Liquidity
Forex market is the largest market in the world. With daily transactions of over US$4 trillion, it dwarfs the stock markets. While there are thousands of different stocks in the stock markets, there are only a few currency pairs in the forex market. Therefore, forex trading is less prone to price manipulation by big players than stock trading. Huge market volume also means that the currency pairs enjoy greater liquidity than stocks. A forex trader can enter and exit the market easily. Stocks comparatively is less liquid, a trader may find problem exiting the market especially during major bad news. This is worse especially for small-cap stocks. Also due to its huge liquidity of forex market, forex traders can enjoy better price spread as compared to stock traders.
Trading Hours & Its Disadvantage to Retail Stock Traders
Forex market opens 24-hour while US stock market opens daily from 930am EST to 4pm EST. This means that Forex traders can choose to trade any hours while stock traders are limited to 930am EST to 4pm EST. One significant disadvantage of retail stock traders is that the stock markets are only opened to market makers during pre-market hours (8:30am – 9:20am EST) and post-market hours (4:30pm – 6:30pm EST). And it is during these pre-market and post-markets hours that most companies release the earnings results that would have great impact on the stock prices. This means that the retails traders (many of us) could only watch the price rise or drop during these hours. Besides, stop order would not be honored during this times. The forex traders do not suffer this significant disadvantage. Also, a stock trader may supplement his/her trading with forex trading outside the stock trading hours.
Affordability
In order to trade stocks, a trader needs to have quite a significant amount of capital in his account, at least a few tens of thousands in general. However, a forex trader can start trading with an account of only a few hundreds dollars. This is because forex trading allows for higher leverage. A forex trader could obtain larger transaction compared to stock market. Some forex brokers offers 100:1, 200:1 or 400:1. A leverage of 100:1 means that a US$1k in account could obtain a 100 times transaction value at US$100k. There is no interest charge for the leveraged money. Stock trading generally allows for not more than 2 times leverage in margin trading. There are interest charges associated with margin trading.
Data Transparency & Analysis Overload
There are thousands of different stocks in different industries. trader needs to research many stocks and picks the best few to trade. There are many factors that affect the stock prices. There are much more factors that may affects stock price than foreign currency exchange rates. The forex traders therefore can focus on few currency pairs to trade. On top of that, most data or news affecting currency exchange rate are announced officially, scheduled and in a transparent manner. Retail forex traders therefore have better chances of success than retail stock traders.
Bear/Bull Stock Market Conditions
Forex traders can trade in both way buying or selling currency pairs without any restrictions. However, stock traders have more constraints to trade and profit in bear market condition. There are more restrictions and costs associated with stock short selling. In a bull market when the economy is doing well, stock traders have a high chance of profitability if they buy stock first then sell it later. Savvy forex traders however, could operate in all market conditions.
Trending Nature of Currency
Major currencies are influenced by national financial policies and macro trends This national financial policies and macro trends tend to last long in a certain direction, either in monetary expansionary (rate cutting) or monetary contractionary cycle (rate hiking cycle). Stock prices however tend to fluctuate up and down due to many factors, many of these factors are micro and specific to the stocks. Therefore forex traders can better exploit the trends in foreign currency markets that stock traders in stock markets. You may want to read Ride The Trend Strategy.
Regulation
Generally, most major stock markets are better regulated than forex markets. Therefore, traders need to be aware of this difference to stock markets. Fortunately, there are however many reputable forex brokers in the market. With prudence and proper research, it is not difficult to find a suitable reliable forex brokers. Refer to How To Find Forex Brokers for details.
Based on the above few points, forex trading seems to be a better trading option than stock trading, especially during these uncertainties in the global economy. During bull market condition, stock trading could be a viable alternative. A stock trader should definitely seriously consider supplementing their trading with forex trading. Forex trading enables a stock trader to exploit any opportunity arises during non stock trading hours, by trading in forex trading. Forex trading would also enable the stock traders to understand a more complete big picture of world economies operations and further enhance their stock trading skills.
Search Engine Placement
Nov
2
Goldie wrote:
Can I buy and sell shares after offiical Trading hours are over
Can I buy and sell shares after offiical Trading hours are over
I cannot access the demat account wrork place.
How safe is it trading over the phone thru HDFC
Credit Repair