Forex trading-vs-stocks

August 5th, 2011 Published by: chamilj

Stock Trading Versus
Forex Trading-Which Is
Better?
AVAFX is another really good trading platform for those
This eBook was created using the Zinepal Online eBook with limited experience. While trading on this site, is not like
Creator. Use Zinepal to create your own eBooks in PDF, playing a game, the technical analysis and data are presented
in such a manner that even a person with no experience in
ePub and Kindle/Mobipocket formats.
financial markets can see what is happening from minute to
Upgrade to a Zinepal Pro Account to unlock more minute.
features and hide this message.
Both offer a wealth of free tools for the investor that allow one
to formulate a trading strategy and create orders that dictate
when to open a trade, when to close a trade, and when to take
FOREX Trading In Sri Lanka profit or stop loss. One tool, known as a trailing stop loss allows
By Admin - www.stock-market-today.net on August 5th, 2011 a trader to enter a trade and ride it as long as movement is
in a favorable direction. The stop loss is set a certain number
of pips behind the entry point. As the position advances, the
stop loss follows at the same number of pips behind. When the
market turns, it can only move the prescribed number of pips
before the stop loss kicks in and closes the trade.

The best way to learn FOREX trading in Sri Lanka on either
platform is to make use of the free demo accounts they offer.
These demo accounts allow one to create orders and make
Sri Lankans have fallen victim to a large number of scams trades based on real time data without risking a dime of their
in recent years. Investment scams such as Sakvithi and hard earned money. One can watch the market movements
Golden Key have promised extraordinarily high returns on and see how much he/she would have made or lost on any
deposits. However, all of these have failed at some point, given trade while remaining secure in that no money was
costing depositors their hard earned money. What is worse, risked.
pyramid schemes are still running rampant throughout the
area. FOREX trading however, is not a scam. This is truly a One thing that most traders do not understand is that the
viable means of making money in the foreign currency market. demo account is good for practice, but does not actually
represent real trades on the market. Trades initiated in the
A relative lack of internet usage in this region makes FOREX demo account have no real impact on the market.
trading in Sri Lanka a little known and littler explored option
for seeking an investment income. However, for those with One more note that should be observed when FOREX trading
internet access, a bit of practice can make this a very lucrative in Sri Lanka is that every winning trade for you is a losing trade
investment opportunity for the savvy investor. for someone else. The same is true if you enter a trade that
loses money. Someone has made money off that trade, it just
The first step is to choose a FOREX broker. Two very good was not you.
options exist for FOREX trading in Sri Lanka. The first is
eToro . This FOREX trading platform is ideal for the beginner. The FOREX market is not a get rich quick scheme. It is a very
This is because the market data is presented using a graphic real, until recently very secret, financial market that holds a
interface that makes trading in FOREX almost like playing a great deal of potential along with a great deal of risk.
video game. Real time data is converted graphically to show
a runner gaining or losing ground in a race. There are other The keys to FOREX trading in Sri Lanka start with finding the
graphic simulations that work in a similar manner to help the best trading platform for your trading style. EToro and AVAFX
newcomer become comfortable with the FOREX market. both offer many useful tools that can make it easier and more
productive to trade with them. Next, one must practice a great

Created using Zinepal. Go online to create your own eBooks in PDF, ePub, Kindle and Mobipocket formats. 1


deal using the free demo account offered by the chosen financial news releases will most likely assist a person in
platform. Few people in the world can claim to be experts in choosing what positions to take and when to enter the trades.
this financial market. All of those who can have accumulated
a great deal of direct experience using demo accounts and Market trends can also be helpful when investing in indices
making live trades in the market. across different markets. For example, when the Dow is
trending downward at the close of business in the US markets,
95 percent of new investors in the FOREX market fail. These industrial indices in Asia are likely to open lower. If these
people lose their investment and become disheartened. One of indices are higher at the end of business in Asia, European
the primary reasons is that they do not take the time to become markets are likely to open higher. Such trends can follow one
knowledgeable and experienced in making trades using their another around the world.
demo account before they jump in with both feet. You want
to in the other 5 percent of investors who make money with There is also a relationship between different indices. For
FOREX trading. example, the Dow Jones is a measure of industrial growth and
NASDAQ is a measure of high tech companies. While both
markets can move in the same direction, the Dow is almost
always going to move more than NASDAQ. If the tech stocks
Stock Index Trading begin to move a great deal, industrials are likely to lose some
By Admin - www.stock-market-today.net on August 5th, 2011 or at least slow down greatly. Understanding this relationship
Important Facts On Stock Index Trading in the indices can help guide investment decisions.
The Best Broker to Start Trading Stock Indices
Stock index trading is very different from other types of
trading in financial markets. Unlike commodity or FOREX One can use any of a thousand different brokers to begin
trading, index trading seems more like an abstraction. After trading stock indices, but who is the best one to get started
all, FOREX trading involves trading in foreign currencies and with? eToro offers the most user friendly interface and the
commodity trading involves tangible objects such as oil, gold, most up to date market information available. One can use the
and foodstuffs. An index is really just a number that measures same type graphic interface to trade indices that was created to
the relative stability of a specific market or economy. make the FOREX market understandable to individuals with
no trading experience whatsoever.
Stock index trading is, in reality, making an investment in
index mutual funds. When you invest in an index, you are Now eToro makes it possible to diversify your portfolio by
effectively investing in a fund that mirrors the movement of adding index futures trading along with your other trading
the index. Index options trading allows you to invest in a activity. There is no longer a need to search for a decent trading
specific large segment of a market, or the entire market itself. system amongst the thousands available online to provide
For example, in stock index trading, you have the option of you with index trading services. EToro allows you to add
investing in the NASDAQ, the Dow Jones, or the S&P 500, index trading to your portfolio today using the same graphic
among other indices, all of which represent different broad interface with which you are already familiar. Moreover, eToro
market properties. By investing, for instance, in the Dow, you saves you the cost of expensive courses on index trading and
would be investing in a significant portion of the industrial signal software. EToro offers free guides and an exclusive
market. trading course that will help you learn about short and long
term indices trading, day trading of indices, index arbitrage,
Advantages of Stock Index Trading spread trading of indices, and strategies for tranche trading.
The Account Manager will also be glad to give you a look at
Individual stocks may rise or fall dramatically at any given index trading and help you create and stick to your own index
time. However, investing in an index spreads the investment trading strategy.
over an entire segment of the market in such a way that one
or two stocks alone can not have a great effect on the market Stock index trading is very different from other types of
movement. It is, in fact, possible to have one or two stocks in investing. However, the goal of investors is the same, making
the fund that lose in a day while the entire index gains several their money grow. EToro has all the tools in place to help
points. investors learn the secrets of index trading and put them to use
growing their portfolios in an easy to understand format not
Following index trends makes it easier to create orders for seen anywhere else.
when to open a trade and when to exit. This can include both
take profit and stop loss orders. Education center

Tips to Trade Indices Conclusion

Among the most useful technical analyses to index traders is Talking to individuals who are knowledgeable and have
the market trend. Financial news releases tend to affect entire expertise in the strategies and methods related to stock index
segments of the market more than simply one or two stocks. trading will be very helpful. They will be able to give you
Therefore, watching market trends and paying attention to invaluable information and details about the most effective



methods to take to make your trading experience profitable have a sufficient balance in their account without having to
and successful. pull out of the market completely. It is always better to have
some funds in reserve to cover losses and to provide the funds
Update (17-01-2011) to begin making winning trades.

Did you ever think that you can trade international stocks like eToro offers a 100 USD cash bonus if a person deposits 500
Microsoft, McDonald and Coca Cola? Yes now you can do it USD into their account. This means that opening an account
with AVAFX from your home. with 500 dollars gives the person 600 dollars to start trading
with. Using leverage ratios of 1:5 all the way up to 1:400, one
Now you can trade international individual stocks in addition can make very large sums of money off successful trades in a
to Stock Index Trading with Ava FX using CFDs. Unlike short time. Putting more into each trade, increases the amount
physically buying stocks, trading CFDs on stocks gives that can be made off the trade.
you the flexibility of trading with leverage. If you want
to buy $10,000 worth of shares, you only need to invest When a person begins trading in FOREX, there are many
approximately $500-$1,000. Read the AVAFX Review for different options available. There are several different trading
more information. platforms, each with its own advantages and disadvantages in
terms of how market data is presented.
• Please note that currently both eToro and AVAFX do not
accept customers from USA. Due to the speed with which changes can take place, following
• Forex/CFD trading involves substantial risk of loss and the data and adjusting one's trade strategies can be difficult at
is not suitable for all investors. first.

eToro provides one of the easiest platforms for beginning
traders. It uses different types of graphic depictions to
illustrate the movement of currency pairs in real time. While
What Is The Minimum Amount a person can open an account for as little as 100 USD, the
Needed To Start FOREX minimum recommended amount is 500 USD. This amount
will provide a higher bonus from eToro to grow the account
Trading? as well as providing a larger reserve amount to cover one's
By Admin - www.stock-market-today.net on August 5th, 2011 account and keep it open in the event that a few initial trades
could go against the trader while he/she is becoming familiar
FOREX (FOReign currency EXchange) is the single most
with the market and learning to read the market data.
liquid and most active financial market in the world. Unlike
traditional markets such as stock markets, FOREX is open
eToro - Forex Trading
virtually 24/7, making it possible to trade at any time it is
convenient for the trader.

Now you know about Free FOREX demo Account and the What is the best way to fund
best methods to fund your eToro account. However, most
people have little idea how to begin trading in FOREX or what eToro Forex trading account?
is the minimum amount needed to start FOREX trading. By Admin - www.stock-market-today.net on August 5th, 2011

OK now you know what the Free Forex Demo Account
Most FOREX trading is handled online. There are many is. Let me explain the best way to fund and withdraw your
different platforms available for traders to use. One of the eToro account balance especially for non PayPal supported
easiest to use is eToro. Like most other trading platforms, countries like Sri Lanka. According to PayPal Sri Lankans can
eToro has a small minimum deposit to open an account. send money but can’t receive using PayPal account. So if
However, it is not really advisable to open an account with the you are living in a country which is not supported for PayPal
absolute minimum allowed. In fact, it is recommended that withdrawal, never use it to fund your eToro Forex trading
one deposit a minimum of 500 USD to open an account. There account. Because eToro only allows you to withdraw to same
are several reasons for this recommendation. way you funded it.

First, most platforms offer a bonus based on the amount of The Best way to Deposit and Withdrawal with eToro.
one's initial deposit. Some do this as a calculated percentage.
Others assign a specific amount based on deposits that fall You can always use your credit card but if you do this you have
within stated ranges. In either case, the bonus that will be to send a scanned copy of your credit card (Both Sides) when
added to one's account will be larger if he/she deposits the you request a withdrawal. Despite eToro never misuse your
maximum amount he/she can afford. card details most of Forex Traders are afraid to send these
sensitive information. To avoid this you have two choices to
Another reason to deposit at least 500 USD is that most traders fund your eToro real Trading Account.
end up with a few losing trades as they begin their excursion
into the market. Investors can afford to take more losses if they 1.NETELLER Account.



2.Moneybookers Account new traders on the market to spend some practicing using a
free forex demo account.

What is a Free Forex Demo Account?

Most forex trades are handled online. There are many different
trading platforms available from which to choose. Each has its
NETELLER NET+ Prepaid Master card own system of tracking market statistics and prices as well as
Although my preferred funding and withdrawal method is releasing news that can, and usually does, impact the prices
NETELLER , their verification process is very strict. Therefore of specific currencies. A free forex demo account is offered by
better to use second best option “Moneybookers”. most trading platforms to assist traders in learning how to read
the market indicators and see how their trades are faring.
Open free “ Moneybookers ” account then gets your credit card
verified and you are done! Then all you have to do is adding The free forex demo account also allows traders to learn about
fund using your card or bank transfer. issuing orders for stop loss and take profit strategies so that
they do not have to physically watch the market every second.
This is good information to have as the forex market is the only
financial market in the world that is open around the clock
almost 7 days a week.
How to deposit by MoneyBookers?
1.To deposit using Moneybookers, click the “Moneybookers” A free forex demo account is the tool offered by the trading
option, enter the amount you wish to deposit and your platforms that allows traders to make investments and test
Moneybookers account email. their skills at reading the market indicators without actually
2.You will be redirected to the Moneybookers website where having to risk any real money. Trades are entered and exited,
you will be asked to enter your password in order to log in. orders are carried out based on the criteria established when
3.You can then choose to either use your Moneybookers the orders were written based on live market prices and action.
account balance or a credit card. The only difference between the practice account and a live
4.Review the transaction and once you've made sure that all account is that no money can be lost while practicing with the
the details are correct, and click on “Pay”. demo account.
Within minutes your trading account should be credited with
funds. If for any reason your request is not approved you will How to Get Maximum Benefit from Free Forex Demo Account
be notified via email.
In order to maximize the benefit of a free forex demo account,
How to withdraw money from eToro? it is important to spend some time working with it. The
account is set up to make it possible for one to learn to read
Please follow these simple steps: market indicators and statistics with an eye toward entering
Enter the Cashier section and click on the “WITHDRAWAL” or exiting a position in a trade. It also provides an opportunity
tab to practice placing orders for automatic transactions to occur
Enter the amount to withdraw (in USD) when the market behaves in certain ways. This can be one of
Complete the electronic withdrawal form as required the most important aspects of using a demo account.
Click “Submit”
It is important to learn as much as possible about the different
Don’t forget to mention “Money bookers” as your receiving ways one can use orders to minimize risk while maximizing
method when you fill out your eToro withdrawal form. Getting profit, even while away from the computer. One should
money out of Money bookers is not a hard task. They practice different strategies as well to see what has the greatest
offer various options including USD cheques and Bank Wire potential for generating profitable trades on a consistent basis.
transfers.
It is important to note that using a demo account follows real
time numbers and market statistics. However, because one
is trading in virtual currency rather than real money, trades
Free forex demo account made using a practice account will not have any effect on the
By Admin - www.stock-market-today.net on August 5th, 2011 market as a whole. This is not the case when using real money
The Importance Of A Free Forex Demo Account to make real trades. Each transaction will affect the volume of
involved currencies available in the market and will have some
Forex is a financial market that was a well kept secret of big effect on the market as a whole.
business and bankers until just a few years ago. It is the most
liquid market in the world and holds the potential for investors For this reason, one would be wise to take this fact into
to make huge profits trading in foreign currencies. However, consideration when practicing with a demo account. Results
this market is unlike any other in the world and there is also will not be identical between demo trades and real trades.
a potential for huge losses. This is why it is important for all However, the demo account remains the best tool for learning



the ins and outs of forex trading so that one can make informed
decisions when planning trades.
The Best Free Forex Demo Account

What is the best free forex demo account? This depends a great
deal on how much knowledge one has of the forex market when
beginning to trade. One of the most user friendly platforms
on the internet is eToro. Their free forex demo account allows
one to view changes in market value of different currencies in
a variety of graphic depictions that make the market seem to
come alive. There is more to it than just a plain line graph that
shows current prices. One can actually see relative movement
in the different currency pairs.

There are different graphic depictions available based on
the users experience with financial markets and data. In
this fashion, eToro makes it possible for even the market
novice to see and understand the different market indicators
and plan his/her strategies accordingly. Making the market
understandable is the one feature that sets the eToro demo
account apart from all the competition across the world wide
web.

In addition, the eToro free forex demo account has one of the
most user friendly interfaces available making it easy to locate
the trading tools one will be using when he/she begins to trade
for real and place important orders concerning when to enter
and exit trades.

http://www.etoro.com/getting-started/practice.aspx

Update.

With FOREX Demo Account you can practice Stock Index
Trading and CFDs in addition to FOREX. AVA FX allows
you to trade internationally traded stocks using their trading
platform.


Forex trading-vs-stocks

Recommandé

Recommandé

Contenu connexe

Dernier

Dernier (20)

En vedette

En vedette (20)

Forex trading-vs-stocks