Trading forex or stocks? Which to choose?

In every field or every person, there are good and bad sides, and whether it’s forex or stocks there are good and bad sides to every one of them.

Advantages and disadvantages of forex trading

The main advantages of forex trading are

• 24-hour trading, accessible 5 days a week for everyone. This advantage is not to be overlooked, as it avoids gaps at the opening the next day, and means you can sleep soundly, as your orders will be executed during the night if need be.
• Liquidity is the best, as this is the most heavily traded market.
  Low transaction costs.
• Ideal for day trading and scalping.
• The main platform for forex trading is metatrader 4, and it’s completely free, with an unlimited number of demo accounts.
• …

False advantages of forex accounts :

• High leverage of up to 500:1, never to be used except to burn your trading account.
• Real accounts can be opened with less than $100, ideal for using leverage and losing your deposit. Frankly, there’s no point in trading forex with $100; if you double your account at the end of the year, you’ll earn €100, but how much time have you spent on it? Not a profitable business…
• …

The disadvantages of trading forex :

• Macroeconomic announcements are frequent and produce high volatility. Forex is a market where the general economy is anticipated.
• Limited trading support, because the further you move away from the main pairs, the higher the spread.
• Many broker scams.
• The stress of trading while the market is open.
• Unlimited losses, which can exceed the capital invested.
• Overnight fees.
• This market is not for the long term, as there’s always a return to the mean. See the chart below, which shows that it’s all back and forth.
• …

Advantages and disadvantages of trading stocks:

The advantages of the stock market are :

• It’s a regulated and monitored market.
• It’s easy to find a reliable broker.
• The focus is on the medium/long term (swing trading, investing, etc.).
• Fees are increasingly low.
• Huge choice over the number of shares you can trade.
• You can trade when the markets are closed to avoid much of the stress.
• A bullish bias, as you can see below: you can’t lose more than 100%, and gains are unlimited (valid only for purchases).
• …

The disadvantages of trading stocks :

• market opening gaps that can exceed 50% against us, so we can’t sleep soundly like intraday traders
• High fees, especially for intraday trading. The US market remains affordable and is more profitable than some currency pairs.
• You can get bored of the daily routine due to the lack of action.
• Leverage is limited, but your account will thank you.
• High-performance platforms aren’t free.
• …

Trading forex or stocks? Which to choose?

Each market has its own particularities, so there’s something for everyone and, above all, something that suits your character best, so that you can trade as calmly as possible.

What do you prefer to trade and when?

Thank you for your time.
Joseph Pergnan