The major difference between forex and stocks trading lies in the fact that when you trade forex, you sell one currency and simultaneously buy another. But when you are trading stocks, you buy the shares when you think that the share price of the stock will rise. Some people prefer stocks over forex while others prefer forex overstocks. There are many brokers who offer both forex trading and stock trading like TurnkeyForex, Saxo Bank, Alpari, and Oanda whenever and wherever you like.
Difference between forex and stocks trading to take note?
- Thread starter helpme_please
- Start date
There is a huge difference between forex trading and stock trading as=
- In stock markets, you purchase stocks and become a member of the company, whereas in forex markets when you open a position you don't get anything, you are just trying to make profits from the market movements.
- Stock markets are traded with a long term perspective whereas the forex market is traded to make profits quickly.
- In Forex markets you get the benefits of using leverage but in most of the stocks, you don’t get any such option.
- In stock markets, you purchase stocks and become a member of the company, whereas in forex markets when you open a position you don't get anything, you are just trying to make profits from the market movements.
- Stock markets are traded with a long term perspective whereas the forex market is traded to make profits quickly.
- In Forex markets you get the benefits of using leverage but in most of the stocks, you don’t get any such option.
not really. All markets are based on the same thing. Human behavior/price movement. I could show you a chart and you wouldnt be able to tell me which is a forex chart and which is a stock chart.
Forex and Stock market are not the same in terms of the way how price behave in the mid-to-long term.
Human behavior may have an impact on price in the short-term, however, mid-to-long-term involves others factors more than just human behavior.
You can check by applying the same trading strategy on a stock and a currency pair for at least 20+ trades, it's most likely one will work much better than the other.
Mmmk. If thats true. Tell me which chart is Forex along with the time of the chart out of these 3.
Attachments
Charts are just charts. I can also show you the price charts of any commodities for a selected period and say they are the same as stock and currencies too.
But that doesn't mean they are the same.
Charts are a reflection of human behavior. In those 3 charts listed it shows the reflection of that human behavior - which are all relatively the same. SO no, charts are not just charts.
"Forex and Stock market are not the same in terms of the way how price behave in the mid-to-long term." - I just debunked this by a simple picture. And instead of stand your position you quip back with "charts are charts"
All 3 of those charts are of different asset classes, one of them being Forex. Which brings me back to my original point - there is no difference in market behavior going on because the markets (any market) are a reflection of human behavior. ANd until we evolve into a new species it will continue.
"Forex and Stock market are not the same in terms of the way how price behave in the mid-to-long term." - I just debunked this by a simple picture. And instead of stand your position you quip back with "charts are charts"
All 3 of those charts are of different asset classes, one of them being Forex. Which brings me back to my original point - there is no difference in market behavior going on because the markets (any market) are a reflection of human behavior. ANd until we evolve into a new species it will continue.
Hmm, is there a statistical edge to prove what you say, or is it just what you think?
If not, then the things you say are just theories that don't translate into practical advice that helps anyone to improve their chance of winning.
Here, I've attached a strategy that was applied on AUD/USD and NFLX, with their historical performance.
If what you say is true, why are they showing very different outcomes with the same strategy?
Cant see anything but it doesnt matter.
A backtest programmer is only as good as the person who created it and the person who is using it. There was a person on here the other day that used a backtest programmer and it showed outrageous profits - obviously not possible regardless of what the program said.
Your youtube says PA trading isnt profitable in a lot of markets and that the drawdown is too high on SPX. Its laughable at best - plenty of people out there using PA to trade that are doing just fine, especially on SPX . I can make anything look a certain way I want in a program too depending on what I decide to plug in.
No sense in continuing this convo.
A backtest programmer is only as good as the person who created it and the person who is using it. There was a person on here the other day that used a backtest programmer and it showed outrageous profits - obviously not possible regardless of what the program said.
Your youtube says PA trading isnt profitable in a lot of markets and that the drawdown is too high on SPX. Its laughable at best - plenty of people out there using PA to trade that are doing just fine, especially on SPX . I can make anything look a certain way I want in a program too depending on what I decide to plug in.
No sense in continuing this convo.
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Hmm ok lol.
I don't use a backtest programmer as I did the programming myself and trade with the signals generated from it. So inflating its performance is the last thing I want to do.
Besides, I didn't say PA strategies aren't profitable - it is the version of PA strategy that I was testing. And I'm sure I said there are assets that my version of PA strategy works much better than others.
Which goes back to our original discussion, I think assets are different.
Of course, that's just my opinion. It's totally fine for others to think differently. Maybe you're right from what you've experienced.
