why forex trading is better than stock ?

It is very important for the investor to know the actual difference between Forex Trading and Stock Trading.
Trading means Forex trading and investing means investing in stocks.

Where to invest your money is completely up to you. It can be either stock or forex or both of them. For making this decision a bit easy, here are 10 factors that you should consider when deciding whether to trade forex or stock. There you go!

1. Technical analysis: Trading in forex is greatly inclined towards technical analysis, which many stock traders consider to be only one factor in their investments, as they also need to examine the market and stock fundamentals. While determining the intrinsic value to your trading strategy, you should probably stick with stocks.

2. Leverage: Forex is another world when it comes to leverage. If you are able to handle the leverage of 50:1 level (forex trading) as compared to 2:1 for trading stocks, then one should opt for this.

3. Discipline: Do you have the trading discipline to cut your losses (and conversely, let your winners run)? The discipline of trading is very much essential for forex trading in order to judge the potential to magnify losses.

4. Bearish bets: Forex trading makes it simple to take a bearish bet on a currency.

5. A number of positions: Forex trading involves a limited number of currencies.

Most financial advisors say it s anything but a matter of expertise level to such an extent as personality and goals that determines if you should to put resources into forex or stocks. Certainly, if you are more inclined to "invest and forget" – i.e., investing money toward retirement – and are keen on continuous, long-term growth, then stocks are a superior decision. In any case, if you crave a more active, hands-on trading knowledge & enjoy the excitement of a quick moving trading market, at that point forex might be the best fit for you.

Today's investors and active traders have access to a growing number of trading instruments, from tried-and-true blue chip stocks and industrials, to the fast-paced futures and foreign exchange (or forex) markets. Deciding which of these markets to trade can be complicated, and many factors need to be considered in order to make the best choice.

The most important element may be the trader's or investor's risk tolerance and trading style. For example, buy-and-hold investors are often more suited to participating in the stock market, while short-term traders – including swing, day and scalp traders – may prefer markets wherein price volatility is more pronounced. In this article, we'll compare investing in the forex market to buying into blue chips, indexes and industrials.

Forex Versus Indexes

Stock market indexes are a combination of similar stocks, which can be used as a benchmark for a particular portfolio or the broad market. In the U.S. financial markets, major indexes include the Dow Jones Industrial Average (DJIA), the Nasdaq Composite Index, the Standard & Poor's 500 Index (S&P 500) and the Russell 2000. The indexes provide traders and investors with an important method of gauging the movement of the overall market.

Traders often compare forex vs stocks to determine which market is better to trade. Despite being interconnected, the forex and stock market are vastly different. The forex trading market has unique characteristics that set it apart from other markets, and in the eyes of many, also make it far more attractive to trade.

Reason #1 Why Forex is Better Than Stocks Because The Forex market trades a larger volume than any other market in the world. The stock market trades roughly $10 billion in volume a day. ... The Forex market trades an average of $1.8 TRILLION dollars of currency a day.

Often traders compare Forex with Stocks to determine which market is the best for trading. Although both of the markets are highly interconnected, still there are lots of differences exist. In the Forex market, you will notice some great and unique features different from other markets. All these features make it more attractive for trading.

1. The forex market has large volume as compared to the stock market.
2. Forex market is highly liquid as compared to the stock market.
3. Forex market never sleeps and works 24 hours, whereas the stock market works only 8 hours.
4. The forex market has a narrow focus, and the stock market has a broader focus.
5. However, despite all these differences, you can utilize the most traded currencies in both markets. No matter what is your purpose, you will get the benefit.