When I was engaged in the foreign exchange industry, many friends would ask me: What made me choose to do foreign exchange instead of the stock market or funds with a larger domestic audience?
To be honest, as a professional trader, I have been involved in stock funds, but in the end I chose foreign exchange. Why?
Like stocks and foreign exchange, on the surface, the research is on the jumping K-line, and there seems to be no difference. But the essential difference is very big.
In terms of transaction fairness, the stock market is often decided by policies, funds, and institutions, and it is more man-made than market will, while the foreign exchange market is a multi-trillion-dollar game of funds every day. In other words, every trader is equal, more fair and just, and almost no one can manipulate the market.
In terms of transaction settlement system, the stock market is T+1, where buying on the same day can only be sold the next day; while the foreign exchange market is T+0, where buying on the same day can be sold on the same day, allowing flexible transactions anytime, anywhere.
In terms of trading hours, the stock market is open for 4 hours a day, while the foreign exchange market is open for trading almost 24 hours a day, with no time limit and free will.
In terms of trading varieties, there are thousands of stocks in the stock market, and stock selection is time-consuming and laborious; while there are only a dozen trading varieties commonly done in the foreign exchange market, which is simple and straightforward. As long as you can specialize in one or two varieties, you can make stable profits.
In terms of trading direction, although there are margin financing and securities lending now, there are many restrictions. In particular, there are more restrictions on short selling of securities lending, which is more like a form, while the foreign exchange market can freely operate long and short. As long as the direction is judged correctly, the rise and fall There are opportunities for profit. It will not be like the stock market, which can almost only stare blankly in the face of a sharp drop in the market.
In terms of transaction threshold, the stock market is generally unleveraged. Even if margin financing and securities lending can be leveraged, there will be many restrictions such as capital size and trading time; while the foreign exchange market can also increase leverage with 100 US dollars, you can choose 100 US dollars as 5 million dollars to use.
In terms of trading scope, the A-share stock market is relatively closed and has less connection with the external market. in
In the transmission of trading information, the information of retail investors in the stock market is seriously lagging behind. If you are not careful, you will be harvested by the main force; it means that you have lost before you run away. However, the foreign exchange market information should be much more open and transparent. Almost everyone receives first-hand information. How to interpret the information depends entirely on personal ability. Everyone competes on the same stage and will not lose at the starting line.
In terms of transaction security, if the stock market cannot prevent a stock like LeEco from coming, let alone a thunderstorm, it will eventually be delisted, and so far, LeEco is not the only stock that has been delisted? So what about the foreign exchange market? Let's just say, the earth does not explode, and the foreign exchange market does not have holidays
So now everyone can probably understand why I chose the foreign exchange market in the choice between the stock market and the foreign exchange market, right?
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