The most frequently asked question is “which is better, Forex or Stocks?”. Both markets are volatile and you can make money trading with either one of them or both. Both have their pros and cons and it really comes down to your preference. However, the biggest difference between the forex market and the stock market is the window of opportunity. Stock trading hours are from 9:30am to 4pm. Pre-market trading hours are from 4am to 9:30am. Not all participants are able to trade diligently during those times due to personal agendas that are involved daily.
Trading forex is preferred by retail traders because you do not need to have a huge investment to begin trading and commission fees are much smaller. There are no middlemen with forex, which gives you direct access to the marker and be able to instantly execute trades at the market’s current price. You may also buy or sell a currency, so you can make money with whichever the market is going. The forex market cannot be manipulated as it is based off of an economy’s health compared to the stock market, investors can manipulate the stock prices by taking short positions using campaigns to bring down the price of a targeted stock.
This is called “Short and Distort”. S&D Sellers use misinformation and a bear market to manipulate a stock, which is illegal. The “Pump and Dump” is the opposite of Short and Distort. This is a tactic used in a bull market to attempt to boost the price of a stock based on misleading or overhyped statements. Perpetrators have a position in the company’s stock and sell their positions after the price of the market reaches new heights, which is also illegal.