FOREX or Stock Market?

Nowadays most people choose to invest their money in various business ventures to earn more. Aside from the day jobs that they have, they are very open to earning something extra to make their future stable. Before, many people were used to investing in real estate. But that requires an extremely large amount of capital for one to invest in.

Now there are ways to earn a little extra without having to put a large amount in. Investing in the stock market and Forex trading are some of them. For someone who is still undecided, but is interested to venture in either one, then one should weigh both, before deciding which one is better. Forex or Stock Market?

In past years the stock market was a popular investment. Most big companies issued stocks to raise funds for their expansion or additional ventures. Each share of stock represents part ownership of a company. If the company makes a profit, then the price of stocks also increase that is how stockholders earn.

Stocks are being traded in different stock exchanges. The NYSE (New York Stock Exchange), NASDAQ (National Association of Securities Dealers Automated Quotation System) are among those famous and leading worldwide.

Investing in stocks is a long term investment, so if you are looking for something that will make you profit in a short while this is not for you. The value of a stock depends on how long a company has withstood its stability through years. There is also what we call stock trading, this is a short term trade wherein brokers take advantage of the market fluctuation where they buy and sell stocks as many times as possible within a single trading day. This is quite risky because your profit is reduced by the commission for every transaction.

FOREX or Foreign exchange market, unlike the stock market, is a short term investment. It is a 24 hour trading and a person need not pay a commission to brokers. Brokers earn by putting their mark up, between the asking and selling price. Another advantage of FOREX is that it is the largest market all over the world; it never runs out of traders because somebody needs to buy or sell currencies of any country daily. Also it is more predictable because it follows certain trends.

The stock market and FOREX trading have their risks. Before anyone enters into any of these types of trading ventures one has to be well-educated on the how and why of these businesses. You also have to have a plan in doing so, and of course the income to invest with.

Payday loans

March-18-2009 Wednesday

Payday loans

Making Forex Market Forces Work for You

January-21-2009 Wednesday

There are numerous tools available for the futures trader to help him profit from the market. However, one should also include an analysis of the market forces themselves, for properly utilized, can benefit a forex trader well.

Risks In The Forex Trade

January-18-2009 Sunday

It's not all money in forex. There are risks involved, and if you're beginning trader, you better know about them. knowing these risks will improve your trades and help you make money.

The Central Banks

January-18-2009 Sunday

The central banks plays a major role in the market of currencies particularly with the interest rates.A trader's familiarity with the activities of the central banks can help him predict the market's direction.

Riding the Elliott Waves

January-18-2009 Sunday

The Elliott Wave principle or the Elliott Wave theory is a concept that divides any major market movement into five waves or phases. It has long been held that this idea can apply to the forex market as well, and should be of interest to forex investors.