Stocks vs Commodity vs Forex

[PankajC]

Dear experienced traders, I have been trading in stocks for sometime, but have little idea of benefits of Forex and Commodities trading over Equity trading. Can someone suggest what are the benefits of trading in MCX or Forex over Equity? Are price fluctuations better estimated in MCX over equities ? Or is it that they trend better? Or is it that they are less whimsical to market news? Or is it that specific commodity is driven more by specific news? What are the attractions in Commodity and Forex trading over Equities? Your pearls of wisdom will help the beginners a lot. Thank you all.

 

[AirTime]

Among all, forex boasts the best of liquidity as it is even decentralized unlike stocks which is kind of centered around the Wall Street.

 

[travi]

@PankajC
You won't get a plain Vanilla answer to your question.
However, if you explained your state, ppl could suggest.
Like what type of volatility, capital, time-in-market, time to trade etc you are interested in.
Everyone trades what suits them best. There are very stable and very volatile scrips in all segments.
You'd have to do a thorough study first.

 

[vagar11]

I think trading in forex is not easy. You will get very high leverage in that.

Commodities trends better than forex and stocks but sometimes candle wicks are very big and they can take you out of the trade.

It's better if you take a look at nifty and decide how you will trade.
Define Entry, exit, SL, risk management and money management. Backtest it.

Don't forget that you are entering into one of the most competitive business.

 

[Nblau]

Dear experienced traders, I have been trading in stocks for sometime, but have little idea of benefits of Forex and Commodities trading over Equity trading. Can someone suggest what are the benefits of trading in MCX or Forex over Equity? Are price fluctuations better estimated in MCX over equities ? Or is it that they trend better? Or is it that they are less whimsical to market news? Or is it that specific commodity is driven more by specific news? What are the attractions in Commodity and Forex trading over Equities? Your pearls of wisdom will help the beginners a lot. Thank you all.

I highly suggest the Forex trading, for example in my experience I was able to enjoy the Forex market and gain some things from it. This is where I gain my secondary income, Forex trading is better than equity trading because it covers all (commodities, forex, indices and stocks)

 

[tradertrader]

You can trade any scrip whether forex, equity, fno, commodities as per your choice. But counter should be liquid and you can judge direction even 60-70% properly. Benefit in mcx is trading hours, margins specially in India. But if international you can trade high volatile index like dax , dow also they also can give good returns. In India rules for trading is ****.But in international if you have opportunity to trade then under 1 roof you can trade with forex, index, equity, commodities with same margin and leverage is also higher then india and lot size also can be used smaller. Now rest depends on how good are you in trading specially in risk management and loss management.

 

[xieun]

We should keep in mind that trading business is risky either we trade stocks, commodities or forex pairs.. The best thing is to ensure that we should only take that extent of risk which we can afford to loose.

 

[NetFreak]

They all are risky no doubt, and Forex is even more riskier, but I prefer to do Forex, as it is the most rewarding too of the three.

 

[rakhidollar]

I think Commodities can be easy to trade because their value is based on supply and demand.

 

[NetFreak]

I prefer to deal with the Forex Trading, though I know that the other options in here are quite easy to dealt with, but the Forex is the most rewarding one.