One of the best ways to become the next millionaire in town is investing. Many people have decided to invest in the forex market. Similarly, there is a group that feels stock trading is more profitable than the forex trading. Deciding between forex and stock market trading can be among the most daunting tasks especially if you are a novice in both fields. This article has outlined reasons why you should consider trading in Forex over traditional stock. After reading this article you will be in a better position to make an informed decision at the end of the day.

High level of liquidity

Liquidity is among the reasons why you should enter the Forex market. According to our sources of information, the currency markets are considered to be larger compared to the stock markets. It is claimed that the forex market daily volume is around 10 times larger than the World’s stock markets combined. This means that it is more liquid than the traditional stock market thereby giving you more reasons to shift.

Allows for 24/7 trading

Unlike the stock market, Forex traders can conduct business around the clock. Whether in the wee hours of the morning or late at night, the forex market is ever busy with investing struggling to make profit out of their trades by all means. This implies that in case you are in a short term trade and there is an adjustment in the price, it becomes very easy to adjust your position. Alternatively, you can opt to enter another market without waiting for the market to reopen before making any move. Although this can be done with stocks as well, the spread in the stock market are likely to wide out. In the forex market, liquidity tends to stay plenty deep for a great percentage of investors around the clock. There are times when currencies become less liquid but the liquidity is often fine for a good number of traders in the forex market. In addition, the spreads are more likely to stay tight in the forex market compared to the stock market.

It has easily manageable trading options

There is no doubt that the ease of selecting the currency you can trade in is yet another reason that makes forex trade a better choice than stock market. Have you ever asked yourself the number of stock market choices exist in the entire world? In the United States of America, Europe and the Asian continent, there are approximately 40 different industries that one can trade in. Each of these industries has its sub industries with each of them having more than 100 stocks to trade in. Therefore, we are talking of tens of thousands and you are only required to choose one of them. Is it not easy to pick one trade from tens of thousands? I bet you will not have a hard time even if you have just entered the Forex market.

There is limited influence of the financial news

Limited impact of the financial news is yet another advantage that accompanies the Forex market. Traders who trade in individuals stocks understand that financial news plays an immense role in their investments. In the Forex market, traders have to watch technical indicators before making any move. Some of the things these traders need to look at include Elliot wave patterns, momentum such as RSI and MACD among others.

Easy short and easy long

The Forex market offers traders with the flexibility to go long as well as short if they find it necessary. When there is a decline in the stock market, a good number of traders find it uncomfortable to trade short because of different reasons. Most of them sell stocks without any hope of buying the same back later on. There are very few investors who are willing to do that even if they have several avenues to do this.

High volatility

The forex market has high volatility just like the stock market. This is good for aggressive traders. For macro traders, the currencies to trade in are well known hence allow you to stay within the trends on the market. The forex market is volatile at times but it is ever trending. These are just some of the advantages of forex trading over the stock market.