Is forex trading more risky than index trading or stock trading? Why?

[krafty]

what is your take? i was told by an old hand that you can lose more in stocks than forex...

any other old hand here?

thxs for advice...:o

http://www.quora.com/Is-forex-trading-more-risky-than-index-trading-or-stock-trading-Why

 

[johnny333]

Don't agree because if you have stocks the value is unlikely to drop to zero. There are also advantages to investing in stocks e.g. the stocks may split & go up in value. Some also give dividends.
A safer form of investing in stocks is to invest in ETFs because it is unlikely that a bunch of stocks in that ETF stock will drop to zero.

While in forex you can blow your account. That is why it is very important that you know how to handle risks & when to get ou of the market..

 

[JackyCheung]

i do not know how to trade forex, next time i want to learn from you.
how about option trading? more risky?

 

[krafty]

bro johnny, but dun forget, stocks are very dependent on market sentiment, remember lehman bros, forex still can be played when such things happen. in stocks, most buy and when it dropped, you lose...and the capital used on stocks is much higher than forex. with forex, you can start playing with 500 dollars average.
i remember bro RUNIFYOUCAN ever mentioned that some lose more money in stocks than some lose in a casino.

Don't agree because if you have stocks the value is unlikely to drop to zero. There are also advantages to investing in stocks e.g. the stocks may split & go up in value. Some also give dividends.
A safer form of investing in stocks is to invest in ETFs because it is unlikely that a bunch of stocks in that ETF stock will drop to zero.

While in forex you can blow your account. That is why it is very important that you know how to handle risks & when to get ou of the market..

 

[Black Swan]

"Risk comes from not knowing what you are doing." - Warren Buffett

 

[Equalisation]

Yes, according to the financial guru Mr Magnus, the index finger is less riskier to break.:o

 

[krafty]

the only cons about forex is no regulation, a lot of big shark brokers from financial institutions have been caught for the past year.

 

[frenchbriefs]

bro johnny, but dun forget, stocks are very dependent on market sentiment, remember lehman bros, forex still can be played when such things happen. in stocks, most buy and when it dropped, you lose...and the capital used on stocks is much higher than forex. with forex, you can start playing with 500 dollars average.
i remember bro RUNIFYOUCAN ever mentioned that some lose more money in stocks than some lose in a casino.

whats the point so what if u can start playing with 500 dollars?u think u can turn that 500 dollars in 50k?thats 10,000% growth.

investing is about building ur portfolio and having a reasonable expectation on return(like 8 or 9%) a year.building ur portfolio means working and saving and injecting capital into it every month(be it $500 or $1000)........a reasonable expectation in investing is expecting $300k portfolio of stocks and bonds to give u 30k passive income a year......thinking u can grow $500 into $50,000 is just a pipe dream.u have better chance of doing that at the casino.

 

[krafty]

frankly, my doing is make about $100 a day getting by, if not lesser, beer and ciggy money. i dun expect making or getting rich in forex.

whats the point so what if u can start playing with 500 dollars?u think u can turn that 500 dollars in 50k?thats 100,000% growth.

investing is about building ur portfolio and having a reasonable expectation on return(like 8 or 9%) a year.building ur portfolio means working and saving and injecting capital into it every month(be it $500 or $1000)........a reasonable expectation in investing is expecting $300k portfolio of stocks and bonds to give u 30k passive income a year......thinking u can grow $500 into $50,000 is just a pipe dream.u have better chance of doing that at the casino.

 

[frenchbriefs]

frankly, my doing is make about $100 a day getting by, if not lesser, beer and ciggy money. i dun expect making or getting rich in forex.

u mean ur goal is to make $100 a day?beer and ciggy money....man back when i was playing online poker for money i was making maybe $20 a day(can arm chio already) and the money was not even constant,but on average i make $150 to $200 usd a week.and that was playing online poker 7 to 10 hours a day.......imagine having to wake up everyday,day in day out face the computer screen and doing the same shit over and over again for 8 hours.....640 minutes of nonstop clicking,....some days u dont even make money,u lose money after "working" for 8 hours straight.....poker may be fun but when u do the same thing day after day,pretty soon u get sick of that shit.....but u have to keep doing it,u depend on it for ur "beer and ciggy money".

u say u want be trader have u ever stared at the trading screen from the time market open till the time it close 7 hours a day,day after day for 6 months or 1 year or 2 years straight?these kind of jobs takes huge amounts of mental concentration and focus.....not like security guard job just sleep the whole day.

 

[Leongsam]

It is far less risky to invest in yourself than to pump money into markets that you don't understand.

 

[krafty]

poker is pure online gambling...how can you compare this to forex trading, which is more skill based?

u mean ur goal is to make $100 a day?beer and ciggy money....man back when i was playing online poker for money i was making maybe $20 a day(can arm chio already) and the money was not even constant,but on average i make $150 to $200 usd a week.and that was playing online poker 7 to 10 hours a day.......imagine having to wake up everyday,day in day out face the computer screen and doing the same shit over and over again for 8 hours.....640 minutes of nonstop clicking,....some days u dont even make money,u lose money after "working" for 8 hours straight.....poker may be fun but when u do the same thing day after day,pretty soon u get sick of that shit.....but u have to keep doing it,u depend on it for ur "beer and ciggy money".

u say u want be trader have u ever stared at the trading screen from the time market open till the time it close 7 hours a day,day after day for 6 months or 1 year or 2 years straight?these kind of jobs takes huge amounts of mental concentration and focus.....not like security guard job just sleep the whole day.

 

[krafty]

i follow on financial news daily, i study charts, these two allow me to understand where the market is heading.

It is far less risky to invest in yourself than to pump money into markets that you don't understand.

 

[Leongsam]

i follow on financial news daily, i study charts, these two allow me to understand where the market is heading.

The news that you get is considered "history" by the time you read it and charts tell you nothing about the future.

If you knew where the market was heading, you'd be a multi millionaire by now.

 

[johnny333]

bro johnny, but dun forget, stocks are very dependent on market sentiment, remember lehman bros, forex still can be played when such things happen. in stocks, most buy and when it dropped, you lose...and the capital used on stocks is much higher than forex. with forex, you can start playing with 500 dollars average.
i remember bro RUNIFYOUCAN ever mentioned that some lose more money in stocks than some lose in a casino.

Have to agree that the market now is very tough with unpredictable with panic selling being common. It happened this month when shares were sold off but the important thing to note is that the market recovered. If you were doing FOREX you could have been wiped out your account if you didn't have stops in place.

I started investing decades ago when making $ was much easier. I stuck to blue chip stocks & usually made $. I took a shotgun strategy investing in shares & unit trusts in Spore, bought CLOB shares in Spore, & bought US equities using a Etrade account. Also got involved with FOREX which cost me big loses:(

Over time I notice that I wasn't making much from my Spore investments:( It's worst today because of GST & charging of user fees.
That is why I got rid of all my Spore investments. The place where I made $ is in the US & Malaysia. I have had some of the shares for 10+ years & today my holdings of Apple are giving me healthy dividens

If are are a newbie to investing I don't recommend FOREX because even if you just doing mini lots you'll eventually face a margin call. Just ask people who have played with the FOREX market & ask them if they are still doing it There are reasons why there are so many FOREX experts that are giving FREE seminars in Spore & elsewhere. If they sponsor your account they get a few pips of whatever you invest in FOREX. It is something like an MLM structure.

If you have a few thousand to invest you can buy stocks in the US where the brokerage charges are cheaper e.g. less than US$10. You can buy 1,2, 3....shares. It is not like in Spore where you have to buy lots of shares. Once you open your US trading be patient & wait for a good time to enter the market. Some brokerages even pay you interest on the funds that you have with them.

 

[frenchbriefs]

poker is pure online gambling...how can you compare this to forex trading, which is more skill based?

actually poker is a game of skill,has been acknowledged by US court as a game of skill and poker has existed in america for nearly 100 years as many variations,like stud poker,razz poker,5 card poker,most famous would be texas holdem and omaha poker.....iv played poker for 4 years and had some tiny success but not alot cause im not very skilled or talented....

but thats not my point,my point is all these activities poker,trading is very time,effort and knowledge intensive activities.....even if u put in a huge amount of time into studying it and practising,results may not be guaranteed.....especially trading.....

 

[krafty]

my strategy in forex is -60pips, i close. i noticed this is the average stop loss but some big sharks know that and they will use that to wipe you out and then start buying/selling again. i did buy google and apple share this year and last year, buy small, minimal profit. however, i prefer a little more excitement and thus forex mondays to fridays.:o

Have to agree that the market now is very tough with unpredictable with panic selling being common. It happened this month when shares were sold off but the important thing to note is that the market recovered. If you were doing FOREX you could have been wiped out your account if you didn't have stops in place.

I started investing decades ago when making $ was much easier. I stuck to blue chip stocks & usually made $. I took a shotgun strategy investing in shares & unit trusts in Spore, bought CLOB shares in Spore, & bought US equities using a Etrade account. Also got involved with FOREX which cost me big loses:(

Over time I notice that I wasn't making much from my Spore investments:( It's worst today because of GST & charging of user fees.
That is why I got rid of all my Spore investments. The place where I made $ is in the US & Malaysia. I have had some of the shares for 10+ years & today my holdings of Apple are giving me healthy dividens

If are are a newbie to investing I don't recommend FOREX because even if you just doing mini lots you'll eventually face a margin call. Just ask people who have played with the FOREX market & ask them if they are still doing it There are reasons why there are so many FOREX experts that are giving FREE seminars in Spore & elsewhere. If they sponsor your account they get a few pips of whatever you invest in FOREX. It is something like an MLM structure.

If you have a few thousand to invest you can buy stocks in the US where the brokerage charges are cheaper e.g. less than US$10. You can buy 1,2, 3....shares. It is not like in Spore where you have to buy lots of shares. Once you open your US trading be patient & wait for a good time to enter the market. Some brokerages even pay you interest on the funds that you have with them.

 

[johnny333]

frankly, my doing is make about $100 a day getting by, if not lesser, beer and ciggy money. i dun expect making or getting rich in forex.

I make much more than $100/day from dividends & I don't even have to sell any of my shares

However it took years of investing & some luck to achieve this level of returns. I just set aside some $ from my salary for investments.

 

[krafty]

this poker story reminded me of a friend who won 200k from the casino in a year, he thought it was skill in barcarrat. following year, he lost 500k.

actually poker is a game of skill,has been acknowledged by US court as a game of skill and poker has existed in america for nearly 100 years as many variations,like stud poker,razz poker,5 card poker,most famous would be texas holdem and omaha poker.....iv played poker for 4 years and had some tiny success but not alot cause im not very skilled or talented....

but thats not my point,my point is all these activities poker,trading is very time,effort and knowledge intensive activities.....even if u put in a huge amount of time into studying it and practising,results may not be guaranteed.....especially trading.....

 

[krafty]

the thing i noticed about forex is you can win and take profit many times, but when you lose, you can lose 60pips(with stop loss if not whole account go bust) in a while.

I make much more than $100/day from dividends & I don't even have to sell any of my shares

However it took years of investing & some luck to achieve this level of returns. I just set aside some $ from my salary for investments.