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

  1. #1
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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.

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    Last edited by Striker$; 08-06-2018 at 09:17 PM.

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    Hello audience, before we can come in conclusion on which is more risky and profitable, I think it is better we look into how all of them are been traded, the advantage and disadvantage, that would give us an edge on knowing which one is far more better. So,today, lets look at forex trading and how it works.

    FOREX


    Forex trading is the buying and selling of currencies in pairs, simultaneously. I believe we all have the basic knowledge about forex, so lets go into the advantage and disadvantages.

    PROFITABILIY AND ADVANTAGES:-

    1. According to my research, forex trading market has the volume of 4 trillion dollar daily transaction: Highly Liquidity.

    2. It is leveraged, which means you can trade a 1000 unit of pairs with just $100 dollars, depending on the leverage your broker offers. ROBOFOREX offers about 1:1000

    3. The market is opened 24/5, that way, it can also be a form of short term income, because of it's highly daily transactions, the charts are more clearer.

    4. There is no additional commission charge, except for swap charges for the long term traders.

    5. It is safe and transparent, can't be manipulated and no form of inside trading unlike stock.



    RISK AND DISADVANTAGES;-

    1. So many unregulated brokers, who are there to take your money, through spread increase and stop haunting.

    2. Highly leveraged; That could make you loss a lot of money in a short period of time, if you are one of the not so disciplined traders.

    So far so good, I can only come up with just two disadvantage of forex trading, if you have any, please share with me. Next, I will be discussing about Cryptocurrencies, which thereafter, we will look into the one which has more risk and more stability in profits.

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    Cryptocurrency




    Apparently, Cryptocurrency is the new trend right now, with it gaining popularity in the recent times. Bitcoin valued about $19,000 per coin last year.



    Quite interesting, right?

    Well, we have also other coin as well, which the most popular ones are;

    1. Bitcoin.

    2. Ethereum.

    3. Ripples.

    4. Litecoin.

    However the king of them all is bitcoin, which determines the fate of them all.


    PROFITABILITY AND ADVANTAGES


    1. Cryptocurrencies are considered to be the future means of transaction, which means it will possibly gain more value in the coming years.

    2. It is really volatile, which means it rises and falls easily, meaning, a good trader can take a good advantage of the price movement.


    DISADVANTAGE AND RISKS


    1. The value of the currencies has no economical or monetary back up, which means that, you can't withdraw your coin directly to your bank account.

    2. Can be easily affected by fake news and panic, because since it has no economy price movement cause, what moves it are only buying and selling from different traders. Therefore, on a fake news, people then to panic and sell off their coin, causing in price devaluation.

    3. A lot of countries are being strict about cyptocurrency usage.

    4. Higher commission charges upon trading

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    I believe that cryptocurrency is a future currency. In the Crypto market the most stable currency is bitcoin. If someone buy bitcoin in 2008 then he will be the millionaire today. In 2008 the Bitcoin price was. 01$. In the start of 2018 the Bitcoin price almost reached at 19000$ which is a big gain. By the profitability Bitcoin is also so risky currency because of Bitcoin price increase and decrease everyday with a big gap. So if a trader want to do trade on Bitcoin then he have need to do trade with proper money management. In my opinion Bitcoin trading is good for long term holding.

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    Trader juniorpeters's Avatar
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    great thread mate! i think Forex is the best of them all,because it is profitable and less risky in the sense that the market hardly gabs the way stock market and Crypto currencies usually gab. trading currencies is far much better for me because technical analysis works better on them unlike other markets, Crypto is very profitable but i can't put my bet on it especially now that its falling without stopping who knows if it might fall back to where it started out from as not many people or investors are interested in buying anymore.

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    Quote Originally Posted by juniorpeters View Post
    great thread mate! i think Forex is the best of them all,because it is profitable and less risky in the sense that the market hardly gabs the way stock market and Crypto currencies usually gab. trading currencies is far much better for me because technical analysis works better on them unlike other markets, Crypto is very profitable but i can't put my bet on it especially now that its falling without stopping who knows if it might fall back to where it started out from as not many people or investors are interested in buying anymore.
    Yes this is true that forex market is really respect the trend then other financial markets. But cryptocurrencies is not a good way to do trade. The price of Bitcoin is increased and decreased so much in some hours and minutes. if a trader do trade with 1: 10 leverage and not do trade with proper money management then maybe they can lost their all of money in one day. But this is also more profitable than other market. But this is true that who take more risk he also earn more.

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    Quote Originally Posted by letsdo View Post
    I believe that cryptocurrency is a future currency. In the Crypto market the most stable currency is bitcoin. If someone buy bitcoin in 2008 then he will be the millionaire today. In 2008 the Bitcoin price was. 01$. In the start of 2018 the Bitcoin price almost reached at 19000$ which is a big gain. By the profitability Bitcoin is also so risky currency because of Bitcoin price increase and decrease everyday with a big gap. So if a trader want to do trade on Bitcoin then he have need to do trade with proper money management. In my opinion Bitcoin trading is good for long term holding.
    That is right, but no on can look into the future and as we can see, things are not stable for the currency as been seen that the market is fluctuating. One thing I would say to traders in this context is that they should see bitcoin like trading any other currency that moves up and down and as we can see, bitcoin is now at around $5000, speculations has it that it could rise at the year ending.



    Quote Originally Posted by juniorpeters View Post
    great thread mate! i think Forex is the best of them all,because it is profitable and less risky in the sense that the market hardly gabs the way stock market and Crypto currencies usually gab. trading currencies is far much better for me because technical analysis works better on them unlike other markets, Crypto is very profitable but i can't put my bet on it especially now that its falling without stopping who knows if it might fall back to where it started out from as not many people or investors are interested in buying anymore.
    The same idea I have as well, and in the conclusion of the article, I will be able to pen down according to me, the one I think that is way more better and then trader should go for.

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    IN CONCLUSION OF WHICH IS MORE PROFITABLE AND THEN LESS RISKY


    First of all, we need to know that there is no risk free business, irrespective of how profitable the business is, all has risk, but in accordance with my experience, Being a forex trader for some time and having learned about Stock Exchange and then knowing about the now popular Cryptocurrencies. I would like to say that FOREX is the king of them all, which is more profitable and less risky with the following point of view of mine.

    1. Forex has a daily transaction of 5 trillion every day.

    2. Forex market is always opened around the clock.

    3. Price are been affected by economy and political event, hence easier to predict price with some meaningful facts on the chart or fundamentally.

    4. You seldom see the big gap in forex, unlike Stock.

    5. Forex trading is more realistic, Bitcoin future is shady, because a lot of country are having strict regulation about it.

    So therefore, Forex is the most profitable one followed by STOCK and then CRYPTOCURRENCIES.

    I hope with all I have written here, I was able to convince you all about which is most profitable and then less risky. However, in general, if we have the knowledge and discipline of trading on any of those market, we can always control the risks.

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    Trader elghina's Avatar
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    Every financial market likes forex , stock and crypto currency is risky. But at there are profitability too. Momentum is the most what we must to search in market for trading or for investment​ too. And what more profitable and less risky of them? This is really difficult to answer, because every of them can to get higher​ profitable and but also risky too, this is how experience of the trader it. Although this is not guarantee for trader , maybe experience trader in long time too could to make wrong too. But sometimes what we can see of them, experience trader, they are calm when floating, and making it be profit wait his patience.

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    The most profitable trading is forex. With a good money management, the risk remains manageable. The crypto currency market is more volatility. Risking less margin than the forex market, otherwise a margin call threatens quickly. The most save market have no leverage, the stock market. But, the most stock trader make profit and the most forex trader make loss!
    Many traders are too greedy and lose their profits again. On some broker websites we see the loss rate of the trader.
    Crytocurrency have a big advantage, you can trade seven days a week. Many part time traders can trade only at the weekend.
    I would say profitability 1.forex, 2. crytocurrency, 3. stock (Shares may also fall).

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