Shares, investment companies, mutual funds, dividends, IPO — people in today’s society often faced with all these terms. Many attracted by the opportunity to buy a small piece of any company (share) and to capitalize on the growth of its value. Of particular interest to the public stock market was caused by active promotion of so-called «people’s IPO» Rosneft, when all those who wish to buy a particle of national heritage. But taking an important decision to invest their money, many people do not think about possible alternatives to the stock market. We are talking about the currency market FOREX, which provides an excellent opportunity to earn money even in a crisis.
Rules of the Game
Currency market compares favorably with the stock that the rules of the game on it known from the outset. When people buy shares, they impose the view that they are taking long-term involvement in the economy. For example, after seeing advertisements Rosneft’s IPO, the population the impression that this is a very reliable company, the cost of which will only grow. As a result, this paper issuer became cheaper, and those who bought them, money is not earned. The crisis has also shown that even the largest capitalization companies may fall at times for very short periods of time, making long-term investments are absolutely meaningless. In FOREX such errors can not occur, which makes it more intuitive to understand.
In the stock market, there are periods of calm, and there are times of strong motions. Everything happens at once, and traders at this point almost no choice: those who adhere to the conservative strategy, just have to leave the market at a time of heightened volatility, and those who are used to speculate on the contrary, have few opportunities to earn money when the market is quiet. FOREX, thanks to the leverage (up to 1: 200), allows you to adjust the level of risk in any market behavior: even on a completely quiet market can make a fortune, if correctly calculate their level of risk.
The predictability of the market
It is important to understand that the stock market is much more difficult to predict. If the major events that influence the currency market (publication of macroeconomic data, the performance of the heads of the Central Bank, etc..) Tend to occur on schedule, in the case of the stock market unpredictability is much more critical. Output of some corporate news could bring down stock prices completely unexpected. The Russian stock market in this respect is particularly vulnerable. Many FOREX or stock market?recall with horror the case of the oil company Yukos, when the trial began against the leadership of the company, its shares fell in price by 20% per day. What was the people who bought these securities and did not have time to sell them!
In addition, it is worth noting that the turnover of the foreign exchange market FOREX trillions of dollars — for this indicator it can not even come close to compare with any stock exchanges. Accordingly, in the case with the FOREX market you do not have the risk of becoming a victim of market makers can trade effectively, without having insider information. On the FOREX market can be situations when there is no buyer for your product, and in the second and third tier of the stock market — it’s a common thing.
Time in the market
Another argument in favor of the foreign exchange market can serve as an opportunity to trade from Monday to Friday, 24 hours a day. Working in the stock market, it is necessary to adapt to the work of the court in which you trade. For example, the trading session on the largest Russian MICEX starts at 10:30 and ends at 18:45. Not everyone can afford to follow the bids during the workday, and the ability to conclude transactions at home after work, respectively, are not. On the FOREX market can trade successfully and after work, which makes it much more suitable for most people.
The price of issue
In the stock market reputable companies set the input threshold at $ 1,000 or more, which complicates the process of exploring the market for newcomers. This is due to the fact that trade with the smaller sum is practically impossible lots considerable number of papers are more than $ 50. Many of us remember the days when $ 1,000 could not buy even one (!) Share of Sberbank (it cost about 40 thousand rubles). In FOREX trading can be equally effective in any amounts — many traders make tens of thousands of dollars, starting with a deposit of $ 5,000, observing the rules of money management.