There are various assets to trade on. Some prefer sticking with equities and invest in stocks that they like. While some have their preference in currency pairs and trade currencies some also trade in the recently popular cryptocurrencies. So there are various options when it comes to trading. The theory behind them all can be learned from the various sources online. But only when you trade live in the market would you be able to understand the market volatility better. So trading can be a lifelong learning process where you keep perfecting your decision-making skills.
Talking about the most popular trading options – stocks and forex which one should you really consider. Though it is a matter of personal choice there are many who recommend starting with forex trading. So even if you are someone who trades equities know that forex trading is definitely worth considering. Here are a few reasons why some traders prefer forex trading to stocks:
The size of the market:
This is both a strength and a weakness for the forex trading. The number of stocks in a market is nearly limitless. So if you are looking to watch the best stocks you would have to pick from a larger pool. It can be beneficial as you have a wider range of options. But that also ends up complicating the choice a bit. The forex market, on the other hand, has very few currencies in comparison with the number of stocks. So you would be able to easily consider all the options at hand and thus make a more confident choice. This makes forex easier to start with for the beginners.
A boon for short selling:
Based on the trading volume and other aspects the stock trading scenario would vary. Short selling is thus difficult in the stock market. But short selling is easy for the forex traders. So you can expect a very high liquidity in comparison with the stock market trading.
Most forex traders have lower rates
Talk about commissions and brokerage the rates are generally low for most forex brokers than the stock brokers. Given the lower profit margin, higher leverage and the relatively lower rates forex makes a perfect option for the first time traders who are looking to start small.
When you have studied the currencies and picked your currency pairs forex trading is easily manageable. If you still find it to be difficult there are forex bots like HBSwiss that would help. You would find more information about HBSwiss here.