Update Free Daily Price Action Forex Trading Strategies & System

Discussion in 'Growing and Managing a Business' started by asiforexmentor, Aug 16, 2011.

  1. asiforexmentor

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    May 16, 2011
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    Forex vs Stocks: Why should you not trade stock?


    Last week we saw a massive drop in the stock market. Dow jones drop by almost 500 points.
    It was the latest biggest drop in a single day after the lehman brothers episode.
    Many of my friends who were trading stocks were caught out unaware resulting in a massive dip in their portfolio.
    Some of them who knew that i am a forex investor asked me if i was affected.
    The answer is and always will be: No.
    Forex vs Stocks: Why should you not trade stock?

    That’s one of the reasons on why i choose forex over stocks.
    Forex vs Stocks Reason No.1
    -> Forex traders are not affected by massive news affecting the economy.
    - At most, we only lose the single trade that we are in when the news happened. Which is only a small percentage of our capital (with the right money management skill)
    Forex vs Stocks Reason No.2
    -> Generally there is no leveraging for stock traders. (not including margin traders – which is very risky)
    - The rich gets rich with leveraging and compounding.
    - Whats the point of investing if there is no leveraging.
    - Therefore, stocks will probably not make you very rich.
    Forex vs Stocks Reason No.3
    -> Forex is a 24 hr market. We forex traders usually enter a trade and are out either in the same day or 2. (depending on which time frame you trade)
    - Generally, if you hold a stock. It is at least for a few months.
    Forex vs Stocks Reason No.4
    -> There is no shorting in the stock market. (Not including options)
    - Meaning you can only buy it up/long.
    And if you notice, the market usually goes up a little with a good news, but drops massively with a bad news.
    Forex vs Stocks Reason No.5
    -> There is no commission in the forex / currency market.
    - The commission may not seem a lot for a single trade, but if you are a full time trader or one who trades a lot. This commission expense will accumulate to a relatively significant figure.
    Forex vs Stocks Reason No.6
    -> Instant buy/sell in the forex market.
    - As the trading volume is so large in the forex market, we do not have to wait for a buyer to take up the lots we are selling (like the stock market).
    - Eg. when the stock market is massively falling, you can’t sell even if you want to as there is no buyers who will buy your lot.
    Forex vs Stocks: Why should you not trade stock?

    The list can go on and on..
    But the point i want to make is:
    The reason that we invest is to make big money.
    Forex vs Stocks at the end of the day are just investment vehicles.
    So why choose a investment vehicle that will probably not make you very rich? and yet heavily affected by the news in the economy?
    Just my 2 cents. I may be wrong.
    Check out our online forex trading AFM winning Price ActionForex Course where i teach you the exact FULL Forex Day Trading Systems & Strategies that i personally use to be consistently profitable.
    See you on the other side my friend,
    Asia Forex Mentor
    Ezekiel Chew
    Asia #1 Forex Mentor

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