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Stocks Trading - Advantages and DisadvantagesWhat is Stocks Trading? Companies throughout the world issue new stock shares every day. They do so to raise capital in order to invest in the business. Once stock shares have been issued the public is free to buy and sell those issues through a stock broker. As the supply and demand for the shares changes so too does the price. Changing stock prices means opportunities to profit for a trader. With the arrival of the internet it is now possible to buy and sell stocks relatively cheaply and almost instantly. This, coupled with increased volatility has given rise to more and more people trading stocks rather than just buying and holding them for years. Advantages of Stocks Trading Better returns. Actively trading stocks can produce better overall returns than simply buying and holding. Huge Choice. There are thousands of stocks listed on markets in the US (such as the New York Stock Exchange and Nasdaq) and around the world. There is always a stock whose price is moving - it's just a matter of finding them. Familiarity. The most traded stocks are in the largest companies that most of us have heard of and understand - Microsoft, IBM, Cisco etc. Disadvantages of Stocks Trading Leverage. With a margined account the maximum amount of leverage available for stock trading is usually 4:1. Meaning a $25,000 could trade up to $100,000 of stock. This is pretty low compared to forex trading or futures trading. Pattern Day Trader Rules. Requires at least $25,000 to be held in a trading account if the trader completes more than 4 trades in a 5 day period. No such rule applies to forex trading or futures trading. Uptick Rule on Short Selling. A trader must wait until a stock price ticks up before they can short sell it. Again there are no such rules in forex trading or futures trading where going short is as easy as going long. Need to Borrow Stock to Short. Stocks are physical commodities and if a trader wishes to go short then the broker must have arrangements in place to 'borrow' that stock from a shareholder until the trader closes their position. This limits the opportunities available for short selling. Contrast this to futures trading where selling is as easy as buying. Costs. Although online trading costs for stock trading are low they still add considerably to the costs of daytrading. Online futures trading is about 1/4 of the cost for the equivalent value. In the UK 0.5% stamp duty is also levied on all share purchases making trading virtually impossible - Hence the popularity of spreadbetting.
MORE RESOURCES updated Thu. April / 18 / 2024 Kickstart the FX trading day for April 17 w/ at technical look at EURUSD, USDJPY, GBPUSD - ForexLive Iran's Currency Market In Turmoil Following Attack On Israel ایران اینترنشنال How to get started in trading forex CNN Underscored US, Japan and South Korea seek to limit dollar's rise Financial Times Stock market today: US stocks slip to deepen weekly losses following mixed earnings reports CW39 Houston Why the Swiss Franc Currency Worth Watching Here See It Market Zimbabwe's new gold-backed currency sliding on black market Voice of America - VOA News Celebrity FX Academy APG University and Etoro Become The Biggest FX Education Hubs Worldwide Yahoo Finance Stock market today: Wall Street ticks higher as pressure eases from the bond market Mcalester News Capital Dollar takes a breather as investors ponder US rates outlook The Economic Times Stock market today: Wall Street rises to recover some of last week's loss as oil prices ease ConchoValleyHomepage.com C8 Technologies launches new systemic FX hedge platform The TRADE News Forex Today Today - 18/04: Stocks Tumble - Sell in May? DailyForex.com This Is How You Make Money Trading New York Magazine AUD/USD Signal Today - 18/04: Resistance at $0.6456 (Chart) DailyForex.com Iran News: Iranian Central Bank Threatens Taxation on Currency Buyers Amid Soaring Dollar Prices - NCRI National Council of Resistance of Iran (NCRI) 3 Best Forex Brokers for 2024 NerdWallet Rupee caught between equity outflows, Asia relief The Economic Times Towards Increasing Complexity: The Evolution of the FX Market - Liberty Street Economics Liberty Street Economics - Korean Won Overtakes US Dollar as Most Widely Used Currency for Trading Cryptocurrencies - ihodl.com Best Forex Brokers In February 2024 Bankrate.com Why Is the Forex Market Open 24 Hours a Day? Investopedia EUR/USD Signal Today - 18/04: Euro Dips, More Fall (Chart) DailyForex.com Forex Trading for Beginners NerdWallet USD/JPY Signal Today - 18/04: USD Pounds JPY (Chart) DailyForex.com GBP/USD Signal Today - 18/04: Bear Flag- More Fall (Chart) DailyForex.com FOREX.com vs. Robinhood: Which Is Right for You? The Motley Fool GBP/USD Analysis Today 17/4: Opportunities Weak (Chart) DailyForex.com US Dollar Forecast: AUD/USD Takes Out February Low FOREX.com US GBP/JPY Forecast Today 18/4: Sees Upward Momentum (Video) DailyForex.com China's New Currency Playbook Council on Foreign Relations How Often Do Exchange Rates Fluctuate? Investopedia EUR/USD Analysis Today 16/4: Nearest Buying Levels (Chart) DailyForex.com EUR/USD Analysis Today 17/4: Inflation Figures, ECB Policy DailyForex.com EUR/USD, DAX may be down – but they're not fully out FOREX.com US GBP/USD Analysis Today 16/4: Strong Selling Pressure (Chart) DailyForex.com USD/JPY Analysis Today 17/4: Strong Buying Saturation Levels DailyForex.com BTC/USD Signal Today - 18/04: BTC Support Breaks pre-Halving DailyForex.com How to Trade Forex for Beginners | Learn Strategies and Tips Admiral Markets
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