How can you compare forex trading to trading individual stocks? With InterTrader, the forex market and the stock market are equally simple to access, via the same trading account, but there are several key reasons why you might prefer one market to the other:
Your trading plan
Are you looking to make a small number of trades each with a significant return? Or do you want to make numerous short-term trades and rely on your risk management strategy to control your bottom line? What is your risk profile? Are you happy to increase your risk for the chance of a quick return?
Stocks, particularly blue-chips, are generally used for longer-term buy-and-hold investments, where your return will be determined over weeks and months. Picking which stocks to trade is often based on quantitative data like a company’s balance sheet or more qualitative factors such as the reputation of a particular brand.
By contrast, the typical volatility of the forex market provides a more suitable venue for day traders, looking to make a profit from short-term price swings with or against the prevailing trend. While the forex market supports many different trading styles, often you’ll find that forex traders want to spot patterns in the price history and have little interest in holding positions for any length of time.
