Saturday, November 22, 2008

The Relationship Between Forex And Stock Trading

Forex trading and stock trading are correlated, both share so many things in common. While forex trading is the buying and selling of foreign currency, stock trading is the buying and selling of stock, equity, bonds, etc.

However, both market share a basic thing in common, it could be bullish or bearish. A bullish market is an upward market, while a bearish market is a downward market.

Also, both trading can be traded with leverage. This leverage is normally given to traders by their trading platform to boost their trading account. Leverage is a double edge sword, just as it can help you make more profit, it can cause you large losses. A proper risk management principle is expedient when trading with leverage.

Both forex and stock trading also have a trading platform through which traders can carry out most of their trading activities online. These trading platforms gives the traders all the necessary trading facilities to enable them jump start.

Forex and stock traders also have brokers, those who offer professional advice from time to time. At times, your broker may assist you trade with some percent of profit given to him as commissions for services rendered.

Stock and forex trading belongs to the class of high investment returns, but generally emphasis has always been on keeping risk low and this bits down the return. This will guarantee you success, also preventing you from excessive loss in initial trading capital that you invested at the beginning.

By Chukwuemeka Agwu

Check Out the Related Article : How To Be a Day Trader - Trading Stocks Online For a Living

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