Forex Trading Vs Investing in 2019 | Which is Better & Why?

Many tend to confuse trading with investing. While they are both approaches to financial markets, their mechanism varies. The goal always remains same in all genres of trading and investing, to walk home with profits.
 

To tell the difference, here are the main 4 factors to determine which is best among the Forex trading vs Investing?

Forex Trading vs Stock Investing in 2019

 

Trading Timeframe:

• As an investor, most, if not all of your calls, are for long-term profiting. Investing is done on timeframes that can stretch up to years! When you take stock market for example, there isn’t any overnight growth to profit from.

• A trader, however, can trade on short, intermediate and long-term timeframes. Some trades last a few minutes, while some go on for months. With either timeframe, the profits are incredible.

Capital Requirement:

• Investing is a process that typically sees a bigger starting capital than trading does. Since investors hold long-term positions, they tend to put in more capital to make up for the longer timeframe.

• Trading can be started with an amount as little as $100. This added up with leverage means that you don’t have to shell much capital starting off.

Potential Risks:

• The investing environment doesn’t see a risk factor as scary as trading markets do. You can invest in commodities and be sure of low risks because of the long nature of the investments.

• Trading, on the other hand, sees a huge amount of risks. You can invest $1000 and end up losing ten times of it your approach isn’t adept enough.

Professional Approach:

• Investors are concerned with long-term moneymaking. Once an investment has been made, it is allowed to mature and bloom into profits. This requires studying the stocks, watching over economic movements and staying abreast of latest developments.

• Traders are usually in the game for short-term profits. This doesn’t make the field any easy, however. To steer clear of the risks, traders have to be aware of global economic happenings and several such factors that influence currency values.

While different from head to toe, both the fields are just as profitable. With a honed approach and proper practice, you can see tremendous profits! Sign up with the ever-reliable broker WesternFX today, and master the art of investing and Forex trading both.