The difference between stock and foreign exchange

Stock and foreign exchange show different characteristics due to different product characteristics. Today I would like to talk about the difference between stock speculation and foreign exchange.
Many foreign exchange traders start from the stock market. After having the experience of speculating in stocks, I came to the foreign exchange market or contacted futures because of some coincidences. This is the natural logic of trading and investment. In my opinion, the difficulty and risk of doing stock is smaller than that of futures. The risk of futures is much smaller than that of foreign exchange.
But the risk is not absolute. Risk comes from the control of trading. From this point of view, stocks, futures and foreign exchange are in the same risk level. If you control carefully enough, you can control the risks.
One of the differences: stock speculation requires higher fundamentals, and foreign exchange mainly depends on technology.
Stocks need to see news broadcast, need to know astronomy, geography. Stocks are most involved in social, economic, cultural and other aspects. A theme and restructuring can make stock prices soar.
Foreign exchange will not. Foreign exchange is a 24-hour transaction, which fluctuates a lot in a day. Most of the foreign exchange is intraday trading and short-term trading, the market in the technical traction, back and forth volatility is very fast, showing and fundamentals associated with not so big side.
The second difference is that the trading rules of stock and foreign exchange are different, which leads to a big difference in trading results.
Stocks are non leveraged trading products, trading rules for T + 1, buy the day can only sell the next day. The stock can only make money when it goes up, but it can only admit loss when it goes down.
Foreign exchange is very different. With the natural gene of leverage, foreign exchange can double or explode in a few minutes. As long as you use a large enough position with leverage, the result of the account is amazing.
The third difference: the imaginable space between stocks and foreign exchange is totally different.
In the foreign exchange market, it is possible to increase it by tens or hundreds of times in a year. But it's impossible in the stock market. Because leverage gives people unlimited possibilities. At the same time, leverage multiplies risk. If we can not properly handle the power of leverage, it is likely to lead to a situation such as position explosion. And a trader who has learned to use the leverage rules reasonably can make enough profits from the market. This is the fun and power of foreign exchange trading.
There are more and more foreign exchange transactions. Compared with other investment products, what are their advantages?
Nowadays, people pay more and more attention to investment. In investment products, many people prefer foreign exchange investment, because foreign exchange investment has its own advantages.
Advantage 1: easy control of foreign exchange trading risk. The first principle of any investment is to avoid risks and keep the principal.
Stop loss price can be set for each transaction according to the market situation and acceptable loss degree.
When the price reaches your lowest stop loss price, the trade will stop automatically to prevent the principal from being damaged too much. The risk is easy to control, but the income has no upper limit.
Advantage 2: the market environment is open and transparent. Compared with the stock market, the foreign exchange market, though not perfect, is the cleanest and most transparent.
Investors do not have to worry about the performance of each stock, there is no so-called "insider trading".
Soros can understand the information, ordinary investors can also understand. The trading volume of the foreign exchange market is 600 billion US dollars per day, which makes no institution have the strength to be a manager.
Advantage 3: flexible time, deal at the price, will not be set.
Trading 24 hours a day, off duty spare time can easily build positions at any time, and do not worry because of the limit of no one to undertake.
Advantage 4: the infinite profit opportunities of short-term fluctuations, the exchange rate changes between international currencies all the time.
You don't have to worry about how much profit you make every day. Because there are opportunities all the time, you can accumulate small victories into big victories. After a year, the short-term profits you get are considerable. It's like guarding a golden mountain to see how much is dug every day.
Advantage 5: small capital to do big transactions, leverage to small broad.
Because foreign exchange margin trading is the international mainstream way of foreign exchange trading, the power is endless two-way trading, there are many opportunities to make money.
Stock investment can only make money if it goes up, while foreign exchange can either go up or down. As long as you choose the right trading direction, you can make money.
In the stock market, the time of short market is far more than that of long market, so it is not easy to grasp investment opportunities.