Stock Trading

A stock market and Forex market have a lot of differences. What are they? 

1. A stock market has limited trading hours. For example, the US stock exchange opens at 9:30 and closes at 16:00 New York time. In contrast to it, the Forex market works round the clock 5 days a week except Saturday and Sunday that allows traders to make deals anytime they want. 

2. Thousands of shares of different companies are usually listed on a stock exchange, so it is very hard to predict the shares of which company would rise or go down. Besides, it is quite difficult to navigate through such a great variety of stocks. In most cases, trading on Forex is carried out with several certain currencies - the majors, with the US dollar dominating the choice of most traders.

3. A stock market is more vulnerable to economic and political jitters than Forex. The economic developments are cyclic in nature, so after a collapse there usually comes an upsweep. Its duration may vary from a few months to a few years. And those investors, who trade on appreciation of some stock, can bear devastating losses. The things are easier on Forex: traders can buy the rising currencies when the market is bullish and sell if there is a downtrend.