The right to choose - FOREX or Stocks

Where better, easier and faster than you can make money? In exchange, the stock or commodity markets? This is one of the most common questions among novice traders.

There are many options. All of them depend on personal preferences and motivations of domestic responsibility.

When investors burns like a match ...

It should never be forgotten that the personal welfare of employees of financial institutions directly dependent on the amount of borrowed funds and transactions by investors. For financial companies - this is a matter of life and death. Financial interest in casting doubt on the veracity of information provided to potential investors by members of individual companies.

Some of these subjective ratings were even myths. Here are just a few examples:

• FOREX investors burns at both matches, while the stock market situation considerably better;

• have direct access to traders, individual (retail) in the American market;

• there is a miracle system, which allows fast and safe to become a millionaire.

Let us consider these three «generally» view themselves and evaluate their veracity. I did not find any more or less reliable statistics on the participants of foreign exchange, stock or commodity markets on the following parameters:

1. The number of new investors surveyed, the percentage of remaining in a year or two, three. The stability of their work.

2. Relationship initial deposit with time finding investors in the market and the state of his accounts at the time of termination.

3. The influence of experience (working in the financial markets) or the method of execution of transactions on the effectiveness of speculative transactions.

Actually no, even implausible, statistics. There are no figures. Only links - such as «available view», «believe», «include», «It is estimated that», etc.

The reasons for this state of financial speculation in the industry understood and explained - a commercial secret. Nevertheless, ready to argue that there is no significant difference between the life expectancy of the investor at any financial market (FOREX, stocks, futures, etc.) and the opportunity to earn or lose money. There can not be! Naturally, provided that you are dealing with an honest company and not with the «kitchen» Dealing setting its own rules. The absence of fundamental differences is explained simply. In financial markets you are trading in risk and probability, rather than equities, futures or currencies. The difference between the market only in the rules of the game: the legislative framework, the methods of execution of transactions, marzhevyh collateral, the liquidity of the financial product.

What determines the success or failure?

Success or failure is determined by understanding the risks and regulations, the ability to use them. The risk of bankruptcy of the company is always higher than the state. Much more variety of external influences that may affect the value of shares. Consequently, the risks of financial speculation in shares of companies is higher than with the exchange. Legal issues, in contrast, is better developed in the stock market. The high volatility of currencies, for example, not the currency itself, and the terms of trade (leverage 1:100).

The success or failure in the financial speculation is determined by the probabilistic risk assessment of certain financial instruments, trading conditions, the performance trasaktsy and other operations, and, of course, proper risk management in the reporting period. Mathematics, Psychology, and appropriate risk assessment determine the effectiveness of the trader, not a financial market in which it operates.

The main reasons for the «experts» from the stock market not to open an account on FOREX, the following: the unreliability of keeping money in the account the broker, the broker distinguish quotations and information system, a large spread (5-10 points), shoulder (1:100) and too small number of financial instruments. These allegations are quite controversial. Insecure storage of money in the account broker - an issue over controversial. Brokers operating in the U.S. stock and futures markets, insurance accounts of their clients. On the currency market - a similar situation. All major companies, Russian or Western, insure customer accounts at its segregated account of the bankruptcy of any external causes. Only difference is, who insures what insurance company? That she would have to borrow money.

From the risk of losing money as a result of financial transactions, not insure anybody. From bankruptcy is not insured or clearing houses, or brokers, working on various financial markets. As well as the problems with the payment of the insurance company - especially if it is somewhere very far away. Choosing a broker - is always a risk that must be taken into account when making a decision. For example, a brokerage firm, engaged in proprietary-trading *, broke more often than others. The difference in the quotes of various information systems in the foreign exchange market appears quite often (the reason is the organizational structure of the market FOREX) and does not exceed a few paragraphs. Here there is no danger for you.

In all financial markets (currency, stock, futures) to increase its profit brokers are using the delay in the execution order. It is to be feared.

Next - spread. Is important not the spread, and its relevance to the base. Let us calculate spread for the Swiss franc at 5 points, with baseline value as a percentage of 1.6873. Less than 0.003 per cent! For shares, valued at $ 30 with a spread of 1 cent, this value is 10 times greater. During strong motion relative spread increases in all financial markets. It is difficult to assess where more. Count - and see for yourself. Marzhevye requirements. Leverage 1:100. The higher the leverage, the greater the risk. It is an axiom. But only if you do not comply with the rules of risk management. Violation is punishable marzhevyh rules equally to all financial markets - the liquidation of positions. As regards the number of financial instruments in the foreign exchange market, so it is not so little, given the exotic currencies and cross rates. Differ only by brokers: some provide these services, others are not. Operations in all financial markets allow to earn money. The risks and potential earnings are comparable. If, of course, is not considered unlikely. Miracles, for example. Type: FOREX with initial deposit of $ 1000 or the American stock market - online with the $ 2000 or deytreyding with direct access to the $ 5000-10000. Or other, united in one thought - to make a penny from a million. We, therefore, gradually come to the next question.