Why Trading in Forex is Better than Investing in Stocks

Trading in forex is better than investing in stocks  because of three simple reasons: the forex market is bigger, more predictable, and more energetic.

Bigger

The forex market is significantly bigger than most markets. From its humble beginnings as a later player in the field of finance, the forex market has soared to the top as one of the most heavily traded among the fields of exchanges. An estimated average of $5.3 trillion dollars is traded daily here compared to the stock’s mere billions. The decentralized nature of the forex market allows it to trade quickly and in bulk wherever in the world.

This heavy volume means one thing for traders better opportunities for profit.

More Predictable

Here is the analogy for it: stocks is to companies as currencies is to countries. Stocks rely on the performance of a company while currencies depend on the health of a country’s economy.

I know what you’re thinking, “How is this better when companies are easier to keep track of compared to whole nation?” That’s where you’re wrong. Companies are more prone to failures as compared to a country that do not fall overnight. Companies present reports that could easily be fabricated while countries have various data such as fundamental and technical analyses which traders can rely on.

More Energetic

The biggest advantage of the forex market and the reason why it has surged to the top is because of one thing: volatility. The forex market offers the chance to profit instantly. You can lose some bets but you can also win them right after. Trading in the forex market gives you more options in when you trade, where you trade, and how you trade. Because the transactions are fast and available 24 hours except on weekends, traders can focus more on their strategies, formulate plans to profit, execute orders, and recover losses.

Trading in the forex is really just better for those people that are dedicated to work for it. If you can handle the fast-pace, risk, and challenge in trading this market, go for it and grow your wealth today.