Are you confused about choosing a trading instrument between forex and stocks? If the answer is “YES” then please follow this review. But I am sure that most of you all are someone who has run a forex trading business or shares so of course you are certainly no stranger to these two terms.
I write this review based on personal experience. Besides wanting to share, I want to make this review a reminder for me to continue to be able to focus and be professional in running the trading business (stocks, forex, mutual funds, gold, and CFD).
This type of instrument in my opinion is less able to be used as a long-term investment instrument because the value is always fluctuating from day to day, from week to week, from month to month, and from year to year.
Then because when running a forex trading business there is the term leverage, this business is a business that is able to provide greater profit potential than stocks as long as we are able to run risk and emotional management properly or if not a very large loss will approach.
Based on this, the forex trading business is included in the number 1 HIGH RISK HIGH RETURN business.
For example is a summary of the following forex trading accounts,
This account was created on 16.11.2017 with an initial fund transfer of $ 97.11 then added funds (made a deposit) of $ 300 so that the total Equity value is $ 397.11.
Until now 08.03.2018 the total Equity value is $ 539.76 (and has been withdrawn for $ 200 ). So that the total profit has been recorded as much as $ 362.02 after deducting rollover fees.
So the account above has posted a profit of 91.16% ($ 362.02 / $ 397.11) in less than 5 months.
Hmmmm if the above account is able to record profits consistently, what needs to be done is to increase the amount of equity or capital. Just it !!!
But keep in mind that to be able to achieve profits like the above, the trader has gone through various kinds of losses too! so it’s not always profitable. His name is also trading, sometimes profit, sometimes loss too.
Well, this mindset or mind is what we have to throw away because if we cannot accept loss then we can be sure we will not be able to survive in this business for a long time.
The profit and loss are the same as the creation of men and women. Their job is to enliven the earth so that the earth is full of colors … 🙂
For trading stocks, to get a 90% profit for 5 months we must exert all our strength to find stocks that have the potential to strengthen with a very significant price increase in the stock exchange.And to find stocks like this is not easy because you have to make some analysis first.
Unlike when trading forex, to get a profit of 100% in a month is very possible. How come it works?this is due to the enormous leverage in forex trading. Because leverage is we are able to buy the volume of trading transactions in very large amounts (up to 400 times) with small capital.
Based on stock trading experience, being able to record profits on average 2% to 5% a month is already a tenure!
Because in trading stocks have no leverage and only margin or loans are limited by time (first 3 days but now 2 days without interest) and will be subject to interest if it’s late paying (yes yes !!!) then all we can do is increase the amount of capital. This is if you want to run trading for a living.
If your stock trading capital is only Rp. 1,000,000 (one million rupiahs), then I suggest you to look for another job as a life support. Because the profit of 2% to 5% per month is only IDR 20,000 – up to IDR 50,000, – not including the risk of loss.
How much capital is needed to run the right stock trading?
Please ask yourself first. What is your purpose in trading shares, if the purpose of trading your stock is to replace the job you are currently in, then ask yourself again! how much money you need to fulfill your life needs for a month or a year.
If your monthly needs are IDR 10,000,000, then the minimum capital you have to prepare is IDR 200,000,000.
So to be able to run a stock trading business requires a lot of capital unless you are able to record fantastic profits like the following taxi driver experience.
So the bottom line is whether you are going to run a forex trading business or stock trading, both of them are equally at risk that must be managed and equally able to provide large profits. And both businesses are including businesses that are High Risk High Return.