The Variation Between FOREX and Stock Market
There are a lot of things in common between FOREX and stock markets.. You use similar charts and trading tools no matter whether you trade FOREX vs. stocks. Trading both at the same time are even allowed in some trading platforms.
Technically, there is no difference in trading FOREX vs. stocks. You can find only one exception if you open and close positions the same way. FOREX market opens 24/7 whereas in various countries, it open and close at regular business hours. You should close all your stock positions before stock exchange closes if you trade intraday because of this reason.
The representation of particular stock or a currency pair is the biggest difference between them. In Foreign Exchange, currency pairs represent economies of entire countries, but stocks may represent single companies or baskets of companies. For instance, EURUSD currency pair represents the entire European economy vs. the entire US economy.
This means that the price will be affected if any economic events will happen in any European country or in the US. But for stocks, any bad news about Microsoft, will not affect Waymart. However bad news about Microsoft may affect Apple, because they compete on the same market.
Ask yourself first if what you really want to achieve in trading in deciding if you want to trade FOREX vs. stocks.
You may go with FOREX which is extremely risky and volatile but gives you great opportunities to make a big buck and you may go safe with good quality stocks which will give you a little return.
If you need to play safe, go for quality stocks. Go for FOREX if you want to have both fun and money!