Forex vs. Stocks

I'd like to know how your friends pick stocks because when I was in the stock market, I had to do loads of research. I subscribed to all sorts of stock magazines, read up on the latest craze and basically spent my whole time doing research. So as far as less screen time goes, that wasn't the case for me. In fact, I spent more screen time looking for stock picks.

Also, I wouldn't say there is less tension involved in stocks. Unless you hedge your positions with collars, you are at a large risk because your money is succeptable to being wiped out with a snap of a finger (i.e. bad earnings, scandals, economic factors).

With the forex, I actually spend less screen time because I just look at the current economies of the pairs that I trade. I see which economy is rising and which one is falling and from there, I make my trade decisions.

Also, with the forex, I can set a stop or even hedge my position so that my risk is already defined. Since I practice good money management, even if I were to lose on a trade, I don't get stressed out about it.

So overall, I think I like the forex lifestyle better. But, if your friends can do stocks effectively, more power to them.

Well these are my views on whether Forex is better or Stock. Let me tell you why;

Advantages of Forex over Stocks

• Forex Brings Profit in Bear and Bull Markets: In the foreign exchange market, there is no short selling restriction. There is potential for profit in currencies regardless of which way the market moves. Forex always involves selling one currency to buy another, so there is no structural bias to the market. Depending on short and long positions, a trader always has an opportunity to profit in a fluctuating market.
• Forex Provides up to 50 Times the Leverage of Stocks: Foreign exchange trading with Forex Capital Management can give you up to 50 times the leverage of your stock trading accounts. For every US$1,000 you invest in stocks, you gain control of at the most US$2,000 worth of shares. But with Forex Capital Management, margin of only US$1,000 gives you control of a currency trade of up to US$100,000 in currencies.
• Forex – Perfect for Technical Traders: Currencies rarely spend time in tight trading ranges, and there is a tendency for strong trends to develop. Over 80% of trading volume is speculative in nature, so the market frequently overshoots before correcting itself. A technically trained trader can identify these breakouts, providing a range of opportunities for entering and exiting positions.
• Trade Forex 24-Hours a Day: Forex trading is a window to the world economy. Trading starts on Sunday at 5:00 PM Eastern Time with the opening of the markets in Singapore and Sidney. A couple of hours later, the Tokyo market is open. Next is London, which opens at 2:00 AM Eastern Time on Monday. And by the time the day catches up to New York, the world currency markets have been at work for fifteen hours. You determine the timing of your trades, instantly reacting to any news or market pressure. Trading stocks when the U.S. markets are closed is not easy and does not provide much liquidity. With forex, you can trade 24-hours a day in the largest and most liquid market in the world.

Well these are a few reasons why I go for Forex over Stocks. You have a different view, let me know, but don't forget to justify your point.