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Aron asked in Business & FinanceInvesting · 3 years ago

What's better forex or stock trading ?

4 Answers

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  • 3 years ago

    Before I answer, I want to make sure you understand I consider the word "trading" to mean buying and selling relatively quickly, trying to make profits from smaller short term movements in prices. "Investing" is different because it means trying to make profits over long term movements in prices.

    With investing, there is no doubt that the stock market outperforms the Forex market, making stocks the better investment.

    With trading the distinction between the two is less clear. The Forex market is a "zero sum game" which means for one investor to make a dollar another investor has to lose a dollar, making the average profit zero. The stock market is not a "zero sum game" and tends to go up more than it goes down over the long term, and even traders can frequently take advantage of that trend, but over a short enough time period the trend is relatively meaningless.

    I have done some shorter term trading of stocks, so I still think it is better for trading, but since I have no experience doing Forex trading my opinion is biased.

  • kswck2
    Lv 7
    3 years ago

    NEVER dabble in Forex unless you Completely understand it.

  • 3 years ago

    Stock trading

  • Anonymous
    3 years ago

    To me it’s Stock trading

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