Is foreign exchange trading safer than buying stocks?

@wittynet (4421)
Philippines
July 8, 2012 6:49pm CST
Have you ever been into this kind of business? Did you earn? I heard in one radio station that foreign exchange trading is safer than buying stocks. They are giving seminars to those who are interested because they believe that we can only be successful if we have enough knowledge about the business that we plan to put up or to engage in. They advise those who are interested to bring their laptop, netbook, or cellphone with internet connection for they want them to access their site during seminar. They added that they will teach those who are interested to read graphs. What is your thought about this? One can already engage in foreign trading with an starting capital of $100 or P 4,186.12.
1 person likes this
8 responses
@TeamCholent (2832)
• United States
12 Jul 12
Firstly I would suggest you learn what forex trading really is. I wouldn't depend on this as even the greatest investment fund managers avoid it, it is just too unpredictable. You are aware you can lose your entire trade within seconds, right? Stocks are never a sure bet but there are some you can assess and are fairly confident will do well and move forward. The first rule in investing is invest only what you can afford to lose. Best of luck
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@Alvals (264)
• Latvia
12 Jul 12
Forex is good way to earn some spare cash. I also use it time to time. But its very risky investment. My advice to you: try with demo account first.
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@Alvals (264)
• Latvia
12 Jul 12
... and use as low leverage as possible. Personally I use 1:10.
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@wittynet (4421)
• Philippines
12 Jul 12
I strongly agree with you! I cannot invest all my savings.
@o0jopak0o (6394)
• Philippines
9 Jul 12
I have dabbled with both and in my experience, forex is more riskier than buying stocks even if forex is somewhat more prevalent and more highly advised by "experts" than buying stocks. I will give you a short example how risky forex are. For example you invest lets say 400 php to buy $10(conversion is $1:40php) In just one day, that conversion might go up and down depending on the market. If it goes up by $1: 41php then all you gain is 10php but if that goes down, you will lose 10php which is almost 10% of what you have invested and this is just by one point and most currencies are highly volatile which means that you would need to wait for a good month or so just to know if you lost your investment or earn a little. Forex is gain money fast or lose money fast which is more like gambling and not really investing. 10% lost investment on good stocks will never happen and most stocks tend to evaluate in time. If you would go with stocks, I would advise you to invest on US companies because there are always stocks to go around from young companies which is not the case in our local stock exchange if you are just a small time stock buyer.
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@o0jopak0o (6394)
• Philippines
11 Jul 12
Can I ask how much are you willing to invest? If you go at it the old fashion way on our local stock market(talking with stock brokers) you can start for as low as 5k php but you might need to wait for a while to buy a stock you desired with that low capital. If you are going international(US), The lowest I have seen is $100 but most online stock sites requires $500. Well from the forex point of view, you are right. The investment is cheap but it is more like gambling. Just don't buy Euro and Us for now. Yuan is great!
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@wittynet (4421)
• Philippines
11 Jul 12
You have a very good point! My problem is I don't have enough capital yet. In forex, I think I can immediately start. I can also immediately earn or lose.
@wittynet (4421)
• Philippines
12 Jul 12
Because I am a beginner, I can only invest $200 or P8000+. This is to ensure that in case I'll lose, I'll not lose all my earnings.
@rsa101 (38166)
• Philippines
9 Jul 12
I think you have that in the reverse. It is more riskier to trade in Forex than in buying stocks. Although both has risk attached to it but then I guess you need to weigh things are. Most are saying that Forex if done correctly could earn you more money than Stock Trading. But then if you trade incorrectly could wipe your money out in just one day. With Stock trading you need to invest in a slow manner where you have to wait patiently before you can really earn. There is a way to earn using averaging method, but that is for a long term investing. While in forex is a very fast trading you need fast decision and with that you can earn fast or lost fast.
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• Indonesia
9 Jul 12
But you need huge money if want to invest in stocks. In forex you just need 20 dollars and start trading.
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@rsa101 (38166)
• Philippines
9 Jul 12
Well in Stock right now there are stocks that are offering as low as PHP5k. Try visiting Citiseconline website to know about their program they offer for the small time investors. From it, you can slowly grow it at small intervals and wait for the right time to hatched the profit from it. From traditional investment this is far less risky and volatility wise compared to Forex Investing. I have nothing against Forex but they are now starting opening to small investors as well. I have tried using the demo account and from it I realized that it is more harder to make money without the proper knowledge and even if you study and learn some techniques there but that it is not totally risk free since to date there are no techniques that can guarantee you will not lose your money. If in Stock Trading there is 85% risk of losing your money what more in Forex Trading.
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@wittynet (4421)
• Philippines
11 Jul 12
Both of you are correct,prosniper and rsa101. I really need to study all about these two before I take risks.
@lampar (7584)
• United States
12 Jul 12
Yes, these are investments that are as safe as stock investment not safer or riskier than it; so long as you know full well what you are doing and know the limitation you have. If you want to win, you just have to play.
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@lampar (7584)
• United States
16 Jul 12
If you have deep pocket and can afford to lose, it is no harm jump into Forex in the present market condition, if not, it is better to stay put with the stock and bond investment plan you currently have. Forex is not for the novice neither it is for small time investors. Have fun in your new venture. Happy Mylotting and cheer!
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@wittynet (4421)
• Philippines
13 Jul 12
Thank you! I really need to attend a seminar first.
@wittynet (4421)
• Philippines
13 Jul 12
I'm ready to take risks after attending a seminar.
@factorial (977)
• Philippines
10 Jul 12
I hope we can invest in this business...
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@wittynet (4421)
• Philippines
11 Jul 12
I hope you can help me understand this first, factorial.
• Malaysia
9 Jul 12
Foreign exchange trading (FOREX) is no different than buying stocks or bonds in the market. It is about trading. You have to acquire knowledge about how the market works, potentially how the currency rates goes up or down against another currency. The only difference is, forex can be done through the net alone with less money compared to buying stocks. You can even start with a $10 investment in some broker company or sites. You can't do that in stocks buying as the selling price is slightly or much higher. So it's a guessing game, with knowledge, your guess will enable you to turn $100 to $10000 in 2 or 3 or even 6 months time. It also comes with a risk just like any other investment. The only thing is, the risk is smaller as like i said just now, you can start with a $10 investment or $100. I've been trading for 1 year plus now, on and off depending on my mood. On a certain month i earn about $150 - $200. But if i am really busy at work for the whole month, i make it at least $50. I also have some fair share of losses along the way especially the early part of my trading days as those time is the time when i actually learn how to read the points and guide to understand the currency market.
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@wittynet (4421)
• Philippines
11 Jul 12
You are correct! The guests in the program said that all their transactions are done online. Have you ever planned of investing 10x bigger than you used to?
• Qatar
13 Aug 12
I'm doing forex trading and stock trading. Forex trading gives you higher gain but higher risk. You may earn 20$ or more a day with forex trading with 300$ capital but the risk of losing your capital is very high. Stock trading is more safe than forex but you have to wait for a long time to earn. There is one technique that I learned in forex trading that help me earn more than lose.
@narnia007 (1050)
• India
27 Aug 12
In my opinion stocks are safer,because to know the trend of a company,it is easy to judge from the news and other media.Stocks are usually traded for company within the country and hence easy to monitor companies within a country.For Forex,global conditions come into play and hence little more difficult to monitor and judge the trend.Even major companies' progress influence the money value.I see that advantage for Forex is that it fluctuates greatly that if we study them properly,loads of money can be made within a short of time.