As a preface, I decided to publish an article, which I found on the internet. There are quite a few such articles on the Internet., and each frog praises its swamp – alone – Forex, other – stock market. Which is the best of this, which is worse, where and what pitfalls can be – I will try to explain in one of the following posts, referring to my practical trading experience.
Forex?
Historically, this is how it has been., what is internet forex trading (FOREX – FOReign EXchange, which translates as "international currency exchange") in the CIS countries, including Russia and Ukraine came earlier, than all other trading platforms. Even before national stock markets were developed and supported by governments, such as RTS, MICEX or Ukrainian Stock Exchange.
If you are a beginner trader, то Вам обязательно нужно пройти education Trading . Without professional knowledge and without going through online trading training, You will not advance one iota in the question of how to play on the stock exchange. Most DCs offer online trading training.. As for the theoretical part, then the training of traders is free of charge. When teaching traders, the teacher, usually, conducts online trading training in a very accessible form, regardless of your initial knowledge. After the theoretical part of learning to trade, You, usually, already know the basics of the foreign exchange market and know technically, how to play on the stock exchange. At this moment, your training in trading is just beginning.! The practical part of working on the exchange, usually, pass or in DC, but already on a paid basis or at home on a demo. Do not open a real account immediately with a significant deposit for the world, since after mastering the theory, very often online forex trading seems to be a trifling matter. You should understand, that you now know how to play on the stock exchange only theoretically! Real online trading training does not even begin with a demo version, but from real losses on a real account.
Forex is currently at its peak, advertising online forex trading on every third page of the Internet, on billboards, in the subway and, even in my elevator. But what is behind this?
Согласно Википедии term “Forex” commonly used to denote the mutual exchange of freely convertible currencies, and not the whole set of foreign exchange transactions. A commonly used combination is “Forex market” (English. Forexmarket), which emphasizes the market, and not the administrative principle of the formation of quotations. Operations in the Forex market by targets can be trading, спекулятивными, хеджирующими, регулирующими (foreign exchange interventions by central banks).
In Runet, the term Forex usually means exclusively speculative currency trading through commercial banks or DC, which is conducted using leverage, i.e. margin trading. That is, online forex trading is a currency trading mechanism, and not exchange of currencies as is the case with the exchange office. To be more precise, then it is not even the currency that is traded, and the obligation to supply a particular currency at the declared price the next day. In such a service, usually, need international banks or multinational corporations.
Trading is carried out through foreign exchange brokers (not to be confused with dealers, about them ), who connect directly to market maker banks, and they, in turn, conduct transactions through large electronic systems (ECN), of which there are exactly two in the world. Это Electronic Business System и Reuters Dealing. The minimum sizes of traded lots in online forex trading are in the hundreds of thousands of dollars., what makes this market the most ”толстым” And, I guess, the most volatile of all existing.
Another feature of online forex trading is round-the-clock work, without holidays and even without days off, more precisely, market maker banks do not work on weekends, but at the expense of smaller ECNs, which do not turn off, minimal movement is still present.
This leads to the fact that the foreign exchange market follows the sun., as some exchanges of the world turn on and others turn off, there is an increase and decrease in activity depending on the time of day. International online forex trading, which is not tied to any country, makes fundamental analysis very difficult, заставляя в большей мере ориентироваться на technical analysis, which was nowhere and never was an easy thing. All this makes online forex trading one of the most difficult markets for traders..
Why, then, online forex trading is widely advertised and has already become a popular entertainment like ONLINE casinos or quizzes? It's all about its availability. Almost any domestic dealer will gladly offer you to open an account with 10 dollars or 1000 Cents. Tempting, is not it? But remember our description of the market – no one will let you into systems like EBS with a small deposit. Is there a valid way to enter the small deposit market? There are as many as two - the first is to trade through a dealer, the second is to enter a small ECN like Currenex, where small lots are traded.
Dealer, unlike a broker on the Internet, forex trading is not obliged to bring every transaction to the market. Decent dealer, if he sees that the amount of orders for buying and selling currency is the same, and so for the most part it happens, just overlaps transactions within itself and thus, does not withdraw a cent to the interbank. In case of strong movement and imbalance towards buying or selling, simply hedges a position with a real broker or dealer with great financial capabilities. All that a dealer of online forex trading needs to work is to rent a Metatrader terminal, two servers for serving demo and real accounts, plus registration in an offshore zone. This is how we got a lot of firms with the word Forex in their headlines.. Very often they have nothing but a website and a contact phone number., including office. Should I trust them? In the vast majority of cases, no, The thing is, что они знают, that most Internet traders end up losing their deposits and simply work on the principle of a tote or a bookmaker's office - in such firms nothing is withdrawn anywhere, winners' earnings are paid from the lost money of other traders, and most of the lost is the income of dealing centers online forex trading. All horror stories about Forex come from the experience of communicating with similar enterprises.. Successful traders are not tolerated there for a long time, and the lifespan of such "kitchens" is not long. Тут нет никаких гарантий. In the CIS, as in most other countries of the world, the activity of internet trading forex is not regulated in any way by law. In fact, if possible, it is better to refrain from working with a dealer.. Or choose it quite deliberately - better than a large and long-existing one, where there are no precedents with non-payment of profits or facts of struggle against a successful Internet trader. Certainly, with a deposit only for a small amount - the best option is a large bank with this service.
A much more attractive option with ECN access through a broker, where there is access to the interbank market but with sparing lot sizes and quite moderate deposits. The most popular ECN of this kind is Currenex. Until recently, such a service was only available from Western brokers such as FXCM, but it is gradually being introduced with us. In this case, you will receive the order book at your disposal, and full transparency of operations. Perhaps, the only serious disadvantage is, that on such systems, Internet Forex trading liquidity is not supported by anyone, which means there is always a risk, that the request will simply not be executed, besides, one should keep in mind, what are the spread sizes, there are often very large, that is, this is not an option for beginners.
For everyone who wants to follow the path of online currency trading, we advise you to take three steps:
1) Интернет трединг обучение 2) Demo account 3) Dealer micro account 4) Minimum deposit у западного ECN брокера. And by the results you will understand, can you earn there and is it for you.
Promotions?
Trading in stocks or the stock market is a relatively new phenomenon for us, if in the case of online forex trading, the majority still understands something, then in the case of working on the stock exchange (фондовой) we have complete financial illiteracy.
Regarding the training of stock market traders, then everything is much more complicated here, than on internet forex trading. In order for a novice trader to understand at least a little what it is like to work on the exchange , you need to go a rather long way online trading training. If in online forex trading fundamental analysis is not possible due to its complexity, then in the stock market in the training of traders takes a rather significant part, especially, as for the average- and long-term investments. Actually, with this approach, work on the stock exchange is often the study of companies, which stocks you are going to trade, which seems to be quite real than in online forex trading.
We need to start with, that stock trading , unlike internet forex trading, it is the trading of assets with independent value.
I.e, if the currency itself is worth nothing and their rates fluctuate relative to each other, then the shares, like any product, has independent value in the currency of that country, where do they trade. I.e, the pricing mechanisms on these sites are completely different.
The second major difference when trading stocks is the choice of traded instruments.. There are about six sane pairs on the currency, some trade 10-12 things. Developed stock markets provide from several hundred to several thousand adequate instruments, from which you can choose those, suitable for your deposit and stock trading style.
Finally, the last and most serious difference is complete transparency when trading stocks , all bidders have the same amount of information. You can see the order book, volumes, accumulations of limit orders, major buyers and sellers. Wherein, as opposed to simple stock trading via ECN, there is liquidity support from specialists and market makers, which means that orders are executed in almost any case.
Naturally, that deception in this situation is extremely difficult, если вообще возможен.
Certainly, this does not guarantee, what you will certainly earn when trading stocks , because for someone to work, someone has to lose, but mostly inexperienced beginners lose, who just came to the market. And working in the foreign exchange and stock market has admittedly never been easy..
Therefore, this matter must be taken seriously.. It all depends on your mindset, financial capacity, available time and even age.
Decide for yourself right away, will you be a trader or investor, i.e, do you want to make money on the market or just protect money from inflation.
Next, decide, what market do you want to work in, it can be both national and foreign stock markets.
Finally, decide on a broker and your trading style.
Further, after compulsory initial training in trading, take your time to start trading. The most interesting are the European and American stock markets due to the development of the economy and the large number of listed companies..
Наиболее предпочтительная на данный момент Нью-йоркская фондовая биржа Nyse, as it is the largest exchange in the world in many ways.
Что же выбрать?
As you have already noticed, online forex trading and stock trading - the markets are different, and approaches to them are also needed different. If you just wonder how to play on the stock exchange, then you can start with forex, at least, it won't cost much, and you can determine whether you need it, just start with 10 Dollars, no more. If you are determined to work longer and more seriously on an exchange with a solid capital and are ready to go from a trader to an investor, then it is best to start and choose exactly stock trading - where this path is really feasible. If you ultimately want to still work on the exchange (фондовой) - it is better to start with it right away, otherwise the experience with Forex will bother you and force you to relearn again, which will be more difficult, rather than starting from scratch.
Anyway, it is very important to undergo online trading training, otherwise you will not understand how to play on the stock exchange . Getting started trading is essential for both markets.
Work on the exchange, but what? It's up to you to decide!
