stocks vs. forex

Remember that both stocks and forex trading involve risk. Forex trading is not conducted on a regulated exchange and as a result, there are additional risks associated with forex trading.
Historically, the majority of the general public has viewed the securities markets as an investment vehicle. In the last ten years securities have taken on a more speculative nature. This was perhaps due to the downfall of the overall stock market as many security issues experienced extreme volatility because of the irrational exuberance displayed in the marketplace. The implied return associated with an investment was no longer true. (If indeed it ever was.) Many traders engaged in the daytrader rush of the late 90's only to realize that, from a leverage standpoint, it took quite a bit of capital to day trade, and the return while potentially higher than long-term investing was not exponential. After the onset of the daytrader rush, many traders moved into the futures stock index markets where they found they could leverage their capital greater and not have their capital tied up when it could be earning interest or making money somewhere else. Like the futures markets, spot currency trading is an excellent vehicle for pattern daytraders who desire to leverage their current capital to trade. Spot currency or forex trading provides more options, greater volatility and stronger trends than currently available in stock futures indexes. Former securities daytraders have an excellent home in spot foreign exchange (forex).


1. No Middlemen
Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market-maker responsible for the pricing on a particular currency pair. Forex traders get quicker access and cheaper costs.


2. Buy/Sell programs do not control the market
How many times have you heard that "fund A" was selling "X" or buying "Z"? Rumor had it that the funds were taking profits because of the end of the financial year or because today is "triple witching day", all as an explanation of why this stock is up or the market in general is down or positive on the session. No matter what your broker says the stock market is very susceptible to large fund buying and selling, and it is not uncommon for a fund to run a particular issue for a few days. In spot currency trading, the liquidity of the forex trading market makes the likelihood of any one fund or bank to control a particular currency very slim. Banks, hedge funds, FCM's, governments, retail currency conversion houses and large net-worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.


3. Analysts and brokerage firms are less likely to influence the market
Have you watched TV lately? Heard about a certain Telecomm stock and an analyst of a prestigious brokerage firm accused of keeping its recommendations, such as "buy" when the stock was rapidly declining? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. IPO's are big business for both the companies going public and the brokerage houses. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients. That catch-22 will never disappear. Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets. Analysts in foreign exchange don't drive the deal flow, they just analyze the forex trading market.

the history of fx-forex (part I)

The modern foreign exchange market (fx or forex) began to develop in 1973. However, money has been around in one form or another since the time of Pharaohs. The Babylonians are credited with the first use of paper bills and receipts, but Middle Eastern moneychangers were the first currency traders to exchange coins from one culture to another. During the middle ages, the need for another form of currency besides coins emerged as the method of choice. These paper bills represented transferable third-party payments of funds, making foreign currency exchange trading much easier for merchants and traders and causing these regional economies to flourish.

From the infantile stages of forex during the Middle Ages to WWI, the forex markets were relatively stable and without much speculative activity. After WWI, the forex markets became very volatile and speculative activity increased tenfold. Speculation in the forex market was not looked on as favorable by most institutions and the public in general. The Great Depression and the removal of the gold standard in 1931 created a serious lull in forex market activity. From 1931 until 1973, the forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the forex markets during these times was little, if any.

why FOREX!?

Over the last three decades the foreign exchange market has become the world's largest financial market, with over US$2 trillion traded daily. Forex is part of the bank-to-bank currency market known as the 24-hour Interbank market. The Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe, to Asia then back to the United States.
Forex Market Summary of Benefits

Until recently, the forex market wasn't for the average trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market vs. other markets, including fantastic liquidity and the strong trending nature of the world's primary currency exchange rates.

Invest In Stock Market

Many options like bank deposits, real estate, mutual funds are available for investments. Often people invest their money without any risk and are satisfied at lower returns. However investments should follow the middle path of medium risk and medium returns. Experience have shown that the returns through systematic investments in stock market are superb than the other modes of investments.

More often than not people look to the share market as a gamble and stay away from it. Stock market definitely has the risk content and dwindling nature. However it is also the firm institution on a longer time horizon. Given the precarious notion as well as possible high returns on investment, up to one third of total savings can safely be invested in stock market.
People often confuse trading with the investment. Trading in daily market requires an extraordinary understanding of many stocks, plethora of parameters that govern the movement of the market index and large information on corporate life On the contrary investments can be made on relatively lesser level of information with only a periodic track of corporate performance.

Market index is a representative index of all the sectors. It really represents the economy in entirety. Investors should not get perturbed by the ups and downs of the index on a smaller time horizon. It will make no sense to see everyday the performance of your shares. That can only heighten the anxiety unnecessarily. However periodic updates of the stock market are the essential. Major changes in government policies, international policies, exchange rates for major currencies make an investor wise and informed.

Stock market is not a gamble institution. Rather it is a reflection of the growth of the national economy. Everybody should reap the fruits of the prospering economy. Wise and systematic investments in stock market definitely shower the bountiful returns. So stay invested in the stock market.

worthlesssss!!!

I am not happy that the huge public fund was being used to sponsor the astronault to the space just to carry out simple experiment which I don't think will has any impact to the improvement of health of Malaysian or human being.

Firstly this project is not meaningful to majority of us though we are so excited with the suceessful lauch. What is that to be proud off as this is a business deal like buy one free one. We just spend the money and the deal was done. Yet I was told that our leader said they are so excited with the deal and without any consideration, they give a call to the next one to be ready to go to the space. I feel so sad as though they can simply use the public fund to do whatever they want. I just want to remind them this is our hard earn money, we are tax payer. Because of this, we lose out a lot of facility and petrol price rise(just because of goverment a word- over budget to rebate) and a lot more. I feel very upset with all this. Why all malaysian just follow the uncle "Anduk " style.

What can you do if you fall in love with one of your friend's girl?

#1. see if she loves you and then it is unstoppable?

#2. distance yourself from her ~ better to stray away than to mess-up your friendship with this person?

#3. Patience is a virtue ~ with any luck they'll break up giving you a chance to make your move?

#4. Gulp down your feelings and never let it out as you will stand to sacrifice the friend and the very sight of the girl??

????? Any comment for your all????

dare to think- MARRIED

Q: ''Why must a person get married?''
A: "Tradition said so."
Q: "Who set the tradition?"
A: "The olden people"

So why must we get married?

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To apply for a credit card, it is highly advised that you conduct some kind of research first, which this website allows you. You have the opportunity to compare the available credit cards in terms of their benefits, interest rates, penalties and other relevant financial information or concerns. Find which credit cards appeal to your needs and simply apply online to the credit card company of your choice. You may be surprised to discover that there are numerous credit cards that you can avail of such as cash back credit cards, business or student credit cards, to mention a few. Filing up an application form and sending it is now faster and easier given this useful website.

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