Tuesday, November 6, 2012

Forex Trading vs Stock Investing

Everyone says that the safest way to make money in stock market is by long term investing. In fact long term investors could have the big disadvantage. Active forex traders can get higher returns.

There are many reasons why forex trading can be a safer than a long term stock investing. Traders can make money both market direction. Unlike a long term stock investor only makes money in bulls market and loses his money in a bears market, forex traders can take advantage of the long or short market .

Successful forex traders base their conclusion of price, the trends and patterns. This is a better way to grow your capital because what you make  is ultimately what the stock does not what the company does.

If you are actively trading in the forex market you can learn from your past trades. The more you learn the better trader you will become. While someone who invest for the long term can´t use what they learned from their past trades into their new trades because their last trades lasted 30 years.