Financial markets: Stocks, Forex, Cryptocurrency. What is more profitable and less risky?
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    Financial markets: Stocks, Forex, Cryptocurrency. What is more profitable and less risky?

    Hello audience, First of all, let's proceed by getting to know the meaning of the different financial market, STOCK, FOREX and CRYPTOCURRENCY.


    STOCK


    In a simple terms and layman's understanding, Stock means the trading of a company's worth, which gives you a little bit part of it's ownership. On the other hand, Stock market is not decentralized, which means it has an HQ sort of, the most popular of them is NEW YORK STOCK EXCHANGE(NYSE). On the other hand, the well being of the company determines the grow in price of their stock.

    PROFITABILIY And ADVANTAGE


    According to my research and reading about stock, I learned the US Stock market worth about $30 trillion dollars in general. That is a huge amount of money right? Let me break it down a little bit.

    1. NYSE market operating hours starts from 9:30am to 4:00am Eastern time. Which means, you have about 7 Hours to trade on the stock market daily, it gives you more time to focus on other jobs and affairs.

    2. Each company will always strive to survive and stay at the top, therefore, stock trading is suitable for long term trading. Which means, all you have to do is buy a company's stock and see them appreciate on the long term. Take a look at some of the chart movements.

    FACEBOOK stock chart from ROBOFOREX MT4



    According to the weekly chart of FB stock market, Facebook stock as at Nov. 2016 was at 115.57, it has rose since then to 218.30. And current price as at this article been written, current price is at 183.40. Which means FACEBOOK value appreciated, it means if you had purchased their stock at Nov, 2016, you would be in huge profits now.

    APPLE Stock chart from ROBOFOREX MT4



    Apple company's value appreciated from 43.88 as at Jan 2011 to 208.61 currently. Which means, if you had placed a buy order, you would have been profitable a lot.

    With this two examples, we can see that most companies will always want to keep their company alive so therefore, on the long term, you should make profits from stock market.


    3. You can trade stock from anywhere around the world with your computer and Internet, as you can see, Roboforex offers a good platform for such.

    RISK And DISADVANTAGE OF STOCKS.


    1. Stock market isn't always opened, therefore you have limited time to trade and limited opportunities.

    2. Stock market is not leveraged, which means you'll be needing a huge sum of money to trade in stocks.

    3. It has low liquidity, therefore causing noisy chart, sudden gaps, with no clarity for short term traders. Take a look at the little time frames chart.

    Apple 4Hour charts.



    You hardly can tell, where is the support or resistance, quite hard to make analysis on. Same as Facebook chart.



    To make it quite easier for my audience to read, I will make a separate post on each financial market. This is all about Stock market for now. Next I will be writing about Forex market, so stay tuned.

    Not allowed!
    Last edited by Striker$; 08-06-2018 at 09:17 PM.

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