Forex trading-vs-stocks


Published on

What is the Best? Forex Trading or Stock Trading? Read forex broker reviews and guides.

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Forex trading-vs-stocks

  1. 1. August 5th, 2011 Published by: chamiljStock Trading VersusForex Trading-Which IsBetter? AVAFX is another really good trading platform for those This eBook was created using the Zinepal Online eBook with limited experience. While trading on this site, is not like Creator. Use Zinepal to create your own eBooks in PDF, playing a game, the technical analysis and data are presented in such a manner that even a person with no experience in ePub and Kindle/Mobipocket formats. financial markets can see what is happening from minute to Upgrade to a Zinepal Pro Account to unlock more minute. features and hide this message. Both offer a wealth of free tools for the investor that allow one to formulate a trading strategy and create orders that dictate when to open a trade, when to close a trade, and when to takeFOREX Trading In Sri Lanka profit or stop loss. One tool, known as a trailing stop loss allowsBy Admin - on August 5th, 2011 a trader to enter a trade and ride it as long as movement is in a favorable direction. The stop loss is set a certain number of pips behind the entry point. As the position advances, the stop loss follows at the same number of pips behind. When the market turns, it can only move the prescribed number of pips before the stop loss kicks in and closes the trade. The best way to learn FOREX trading in Sri Lanka on either platform is to make use of the free demo accounts they offer. These demo accounts allow one to create orders and makeSri Lankans have fallen victim to a large number of scams trades based on real time data without risking a dime of theirin recent years. Investment scams such as Sakvithi and hard earned money. One can watch the market movementsGolden Key have promised extraordinarily high returns on and see how much he/she would have made or lost on anydeposits. However, all of these have failed at some point, given trade while remaining secure in that no money wascosting depositors their hard earned money. What is worse, risked.pyramid schemes are still running rampant throughout thearea. FOREX trading however, is not a scam. This is truly a One thing that most traders do not understand is that theviable means of making money in the foreign currency market. demo account is good for practice, but does not actually represent real trades on the market. Trades initiated in theA relative lack of internet usage in this region makes FOREX demo account have no real impact on the in Sri Lanka a little known and littler explored optionfor seeking an investment income. However, for those with One more note that should be observed when FOREX tradinginternet access, a bit of practice can make this a very lucrative in Sri Lanka is that every winning trade for you is a losing tradeinvestment opportunity for the savvy investor. for someone else. The same is true if you enter a trade that loses money. Someone has made money off that trade, it justThe first step is to choose a FOREX broker. Two very good was not you.options exist for FOREX trading in Sri Lanka. The first iseToro . This FOREX trading platform is ideal for the beginner. The FOREX market is not a get rich quick scheme. It is a veryThis is because the market data is presented using a graphic real, until recently very secret, financial market that holds ainterface that makes trading in FOREX almost like playing a great deal of potential along with a great deal of game. Real time data is converted graphically to showa runner gaining or losing ground in a race. There are other The keys to FOREX trading in Sri Lanka start with finding thegraphic simulations that work in a similar manner to help the best trading platform for your trading style. EToro and AVAFXnewcomer become comfortable with the FOREX market. both offer many useful tools that can make it easier and more productive to trade with them. Next, one must practice a greatCreated using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 1
  2. 2. August 5th, 2011 Published by: chamiljdeal using the free demo account offered by the chosen financial news releases will most likely assist a person inplatform. Few people in the world can claim to be experts in choosing what positions to take and when to enter the trades.this financial market. All of those who can have accumulateda great deal of direct experience using demo accounts and Market trends can also be helpful when investing in indicesmaking live trades in the market. across different markets. For example, when the Dow is trending downward at the close of business in the US markets,95 percent of new investors in the FOREX market fail. These industrial indices in Asia are likely to open lower. If thesepeople lose their investment and become disheartened. One of indices are higher at the end of business in Asia, Europeanthe primary reasons is that they do not take the time to become markets are likely to open higher. Such trends can follow oneknowledgeable and experienced in making trades using their another around the world.demo account before they jump in with both feet. You wantto in the other 5 percent of investors who make money with There is also a relationship between different indices. ForFOREX trading. example, the Dow Jones is a measure of industrial growth and NASDAQ is a measure of high tech companies. While both markets can move in the same direction, the Dow is almost always going to move more than NASDAQ. If the tech stocksStock Index Trading begin to move a great deal, industrials are likely to lose someBy Admin - on August 5th, 2011 or at least slow down greatly. Understanding this relationshipImportant Facts On Stock Index Trading in the indices can help guide investment decisions. The Best Broker to Start Trading Stock IndicesStock index trading is very different from other types oftrading in financial markets. Unlike commodity or FOREX One can use any of a thousand different brokers to begintrading, index trading seems more like an abstraction. After trading stock indices, but who is the best one to get startedall, FOREX trading involves trading in foreign currencies and with? eToro offers the most user friendly interface and thecommodity trading involves tangible objects such as oil, gold, most up to date market information available. One can use theand foodstuffs. An index is really just a number that measures same type graphic interface to trade indices that was created tothe relative stability of a specific market or economy. make the FOREX market understandable to individuals with no trading experience whatsoever.Stock index trading is, in reality, making an investment inindex mutual funds. When you invest in an index, you are Now eToro makes it possible to diversify your portfolio byeffectively investing in a fund that mirrors the movement of adding index futures trading along with your other tradingthe index. Index options trading allows you to invest in a activity. There is no longer a need to search for a decent tradingspecific large segment of a market, or the entire market itself. system amongst the thousands available online to provideFor example, in stock index trading, you have the option of you with index trading services. EToro allows you to addinvesting in the NASDAQ, the Dow Jones, or the S&P 500, index trading to your portfolio today using the same graphicamong other indices, all of which represent different broad interface with which you are already familiar. Moreover, eToromarket properties. By investing, for instance, in the Dow, you saves you the cost of expensive courses on index trading andwould be investing in a significant portion of the industrial signal software. EToro offers free guides and an exclusivemarket. trading course that will help you learn about short and long term indices trading, day trading of indices, index arbitrage,Advantages of Stock Index Trading spread trading of indices, and strategies for tranche trading. The Account Manager will also be glad to give you a look atIndividual stocks may rise or fall dramatically at any given index trading and help you create and stick to your own indextime. However, investing in an index spreads the investment trading strategy.over an entire segment of the market in such a way that oneor two stocks alone can not have a great effect on the market Stock index trading is very different from other types ofmovement. It is, in fact, possible to have one or two stocks in investing. However, the goal of investors is the same, makingthe fund that lose in a day while the entire index gains several their money grow. EToro has all the tools in place to helppoints. investors learn the secrets of index trading and put them to use growing their portfolios in an easy to understand format notFollowing index trends makes it easier to create orders for seen anywhere else.when to open a trade and when to exit. This can include bothtake profit and stop loss orders. Education centerTips to Trade Indices ConclusionAmong the most useful technical analyses to index traders is Talking to individuals who are knowledgeable and havethe market trend. Financial news releases tend to affect entire expertise in the strategies and methods related to stock indexsegments of the market more than simply one or two stocks. trading will be very helpful. They will be able to give youTherefore, watching market trends and paying attention to invaluable information and details about the most effectiveCreated using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 2
  3. 3. August 5th, 2011 Published by: chamiljmethods to take to make your trading experience profitable have a sufficient balance in their account without having toand successful. pull out of the market completely. It is always better to have some funds in reserve to cover losses and to provide the fundsUpdate (17-01-2011) to begin making winning trades.Did you ever think that you can trade international stocks like eToro offers a 100 USD cash bonus if a person deposits 500Microsoft, McDonald and Coca Cola? Yes now you can do it USD into their account. This means that opening an accountwith AVAFX from your home. with 500 dollars gives the person 600 dollars to start trading with. Using leverage ratios of 1:5 all the way up to 1:400, oneNow you can trade international individual stocks in addition can make very large sums of money off successful trades in ato Stock Index Trading with Ava FX using CFDs. Unlike short time. Putting more into each trade, increases the amountphysically buying stocks, trading CFDs on stocks gives that can be made off the the flexibility of trading with leverage. If you wantto buy $10,000 worth of shares, you only need to invest When a person begins trading in FOREX, there are manyapproximately $500-$1,000. Read the AVAFX Review for different options available. There are several different tradingmore information. platforms, each with its own advantages and disadvantages in terms of how market data is presented. • Please note that currently both eToro and AVAFX do not accept customers from USA. Due to the speed with which changes can take place, following • Forex/CFD trading involves substantial risk of loss and the data and adjusting ones trade strategies can be difficult at is not suitable for all investors. first. eToro provides one of the easiest platforms for beginning traders. It uses different types of graphic depictions to illustrate the movement of currency pairs in real time. WhileWhat Is The Minimum Amount a person can open an account for as little as 100 USD, theNeeded To Start FOREX minimum recommended amount is 500 USD. This amount will provide a higher bonus from eToro to grow the accountTrading? as well as providing a larger reserve amount to cover onesBy Admin - on August 5th, 2011 account and keep it open in the event that a few initial trades could go against the trader while he/she is becoming familiarFOREX (FOReign currency EXchange) is the single most with the market and learning to read the market data.liquid and most active financial market in the world. Unliketraditional markets such as stock markets, FOREX is open eToro - Forex Tradingvirtually 24/7, making it possible to trade at any time it isconvenient for the trader.Now you know about Free FOREX demo Account and the What is the best way to fundbest methods to fund your eToro account. However, mostpeople have little idea how to begin trading in FOREX or what eToro Forex trading account?is the minimum amount needed to start FOREX trading. By Admin - on August 5th, 2011 OK now you know what the Free Forex Demo AccountMost FOREX trading is handled online. There are many is. Let me explain the best way to fund and withdraw yourdifferent platforms available for traders to use. One of the eToro account balance especially for non PayPal supportedeasiest to use is eToro. Like most other trading platforms, countries like Sri Lanka. According to PayPal Sri Lankans caneToro has a small minimum deposit to open an account. send money but can’t receive using PayPal account. So ifHowever, it is not really advisable to open an account with the you are living in a country which is not supported for PayPalabsolute minimum allowed. In fact, it is recommended that withdrawal, never use it to fund your eToro Forex tradingone deposit a minimum of 500 USD to open an account. There account. Because eToro only allows you to withdraw to sameare several reasons for this recommendation. way you funded it.First, most platforms offer a bonus based on the amount of The Best way to Deposit and Withdrawal with eToro.ones initial deposit. Some do this as a calculated percentage.Others assign a specific amount based on deposits that fall You can always use your credit card but if you do this you havewithin stated ranges. In either case, the bonus that will be to send a scanned copy of your credit card (Both Sides) whenadded to ones account will be larger if he/she deposits the you request a withdrawal. Despite eToro never misuse yourmaximum amount he/she can afford. card details most of Forex Traders are afraid to send these sensitive information. To avoid this you have two choices toAnother reason to deposit at least 500 USD is that most traders fund your eToro real Trading Account.end up with a few losing trades as they begin their excursioninto the market. Investors can afford to take more losses if they 1.NETELLER Account.Created using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 3
  4. 4. August 5th, 2011 Published by: chamilj2.Moneybookers Account new traders on the market to spend some practicing using a free forex demo account. What is a Free Forex Demo Account? Most forex trades are handled online. There are many different trading platforms available from which to choose. Each has its NETELLER NET+ Prepaid Master card own system of tracking market statistics and prices as well asAlthough my preferred funding and withdrawal method is releasing news that can, and usually does, impact the pricesNETELLER , their verification process is very strict. Therefore of specific currencies. A free forex demo account is offered bybetter to use second best option “Moneybookers”. most trading platforms to assist traders in learning how to read the market indicators and see how their trades are faring.Open free “ Moneybookers ” account then gets your credit cardverified and you are done! Then all you have to do is adding The free forex demo account also allows traders to learn aboutfund using your card or bank transfer. issuing orders for stop loss and take profit strategies so that they do not have to physically watch the market every second. This is good information to have as the forex market is the only financial market in the world that is open around the clock almost 7 days a week.How to deposit by MoneyBookers?1.To deposit using Moneybookers, click the “Moneybookers” A free forex demo account is the tool offered by the tradingoption, enter the amount you wish to deposit and your platforms that allows traders to make investments and testMoneybookers account email. their skills at reading the market indicators without actually2.You will be redirected to the Moneybookers website where having to risk any real money. Trades are entered and exited,you will be asked to enter your password in order to log in. orders are carried out based on the criteria established when3.You can then choose to either use your Moneybookers the orders were written based on live market prices and action.account balance or a credit card. The only difference between the practice account and a live4.Review the transaction and once youve made sure that all account is that no money can be lost while practicing with thethe details are correct, and click on “Pay”. demo account.Within minutes your trading account should be credited withfunds. If for any reason your request is not approved you will How to Get Maximum Benefit from Free Forex Demo Accountbe notified via email. In order to maximize the benefit of a free forex demo account,How to withdraw money from eToro? it is important to spend some time working with it. The account is set up to make it possible for one to learn to readPlease follow these simple steps: market indicators and statistics with an eye toward enteringEnter the Cashier section and click on the “WITHDRAWAL” or exiting a position in a trade. It also provides an opportunitytab to practice placing orders for automatic transactions to occurEnter the amount to withdraw (in USD) when the market behaves in certain ways. This can be one ofComplete the electronic withdrawal form as required the most important aspects of using a demo account.Click “Submit” It is important to learn as much as possible about the differentDon’t forget to mention “Money bookers” as your receiving ways one can use orders to minimize risk while maximizingmethod when you fill out your eToro withdrawal form. Getting profit, even while away from the computer. One shouldmoney out of Money bookers is not a hard task. They practice different strategies as well to see what has the greatestoffer various options including USD cheques and Bank Wire potential for generating profitable trades on a consistent basis.transfers. It is important to note that using a demo account follows real time numbers and market statistics. However, because one is trading in virtual currency rather than real money, tradesFree forex demo account made using a practice account will not have any effect on theBy Admin - on August 5th, 2011 market as a whole. This is not the case when using real moneyThe Importance Of A Free Forex Demo Account to make real trades. Each transaction will affect the volume of involved currencies available in the market and will have someForex is a financial market that was a well kept secret of big effect on the market as a and bankers until just a few years ago. It is the mostliquid market in the world and holds the potential for investors For this reason, one would be wise to take this fact intoto make huge profits trading in foreign currencies. However, consideration when practicing with a demo account. Resultsthis market is unlike any other in the world and there is also will not be identical between demo trades and real trades.a potential for huge losses. This is why it is important for all However, the demo account remains the best tool for learningCreated using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 4
  5. 5. August 5th, 2011 Published by: chamiljthe ins and outs of forex trading so that one can make informeddecisions when planning trades.The Best Free Forex Demo AccountWhat is the best free forex demo account? This depends a greatdeal on how much knowledge one has of the forex market whenbeginning to trade. One of the most user friendly platformson the internet is eToro. Their free forex demo account allowsone to view changes in market value of different currencies ina variety of graphic depictions that make the market seem tocome alive. There is more to it than just a plain line graph thatshows current prices. One can actually see relative movementin the different currency pairs.There are different graphic depictions available based onthe users experience with financial markets and data. Inthis fashion, eToro makes it possible for even the marketnovice to see and understand the different market indicatorsand plan his/her strategies accordingly. Making the marketunderstandable is the one feature that sets the eToro demoaccount apart from all the competition across the world wideweb.In addition, the eToro free forex demo account has one of themost user friendly interfaces available making it easy to locatethe trading tools one will be using when he/she begins to tradefor real and place important orders concerning when to enterand exit trades. FOREX Demo Account you can practice Stock IndexTrading and CFDs in addition to FOREX. AVA FX allowsyou to trade internationally traded stocks using their tradingplatform.Created using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 5