How Is Forex Trading Different From Stock Trading

When it comes to investment, there is no shortage of opportunities. From Forex to stocks, to CFDs and futures - the financial market extends far and wide to provide traders with ample variety. Amongst the many investment domains, Forex trading and stock exchange stands tall. 

These two are incredibly lucrative and see a massive amount of traders entering routinely. The fame these fields carry has led several people to confusion! Many are often unable to decide between these two. Read on below to find out what separates stock exchange from currency trading. 

Forex Trading

Stock Trading: 

Put simply, stock trading is the buying and selling of a company's shares. Each share represents ownership of the company in percentages. When a company is growing, it usually lists itself on the stock market. When a said company sees profits, its market shares go up in value and you will be able to sell the stocks you purchased for a higher amount. 

Forex Trading: 

Unlike the long-term stock exchange, Forex is more of a short-term market but does occasionally see long-term trades. Forex Trading is the buying and selling of currencies. As a currency trader, you buy currencies from a foreign country, wait for an increase in value and sell it for profits. Since there is a massive level of volatility in the currency markets, trades are a lot more risky on these grounds. 

How Do These Two Differ?

1) For starters, Forex trading offers leverage to traders. Leverage is money borrowed from your broker so that you can have access to high-value trades without owning huge amounts of money right off the bat. 

2) Stock trading can't be done round the clock. Forex is a decentralized market that works 24x7 for 5 days a week, this gives traders a lot more time to capitalize on market trends!

3) Share trading is a lot more stable and secure when compared to Forex trading. While there are indeed risks involved in a stock exchange, they are of lesser magnitude.

Ultimately, choosing a trading domain comes down to your preference. For the long-term trade, stocks can be a great start. They are slow-paced but steady and when done right, can bring in hefty returns. Forex trading, on the other hand, is a lot more risky but just as profitable. If you can adeptly balance out the market risks, you will stand to make stellar profits!

Be it stock trading or Forex trading - get started today with the best! Join hands with WesternFX, one of the top Forex Brokers in the markets. With the assistance our experts provide, you will bag big wins and climb up the ladder in no time. Call us today to know more.

4 Rules for Beginners to Invest in Stock Market Exchange

With new companies emerging every day, the stock market is becoming more viable! Everyone wants to invest in shares and return with a million dollars at the end of a few years. However, of all the traders who enter stock markets, only 10% succeed. Investing in falling shares, lack of money management, overtrading, are some of the many reasons traders take a huge fall. Worry not; you can be a part of the winning 10% if you know how to maneuver around the markets.
 

Following these steps will help you utilize the lucrative nature of equities to the fullest:
 

Stock Market Investment Tips

1) Research: There is no ironclad strategy that guarantees unending returns. Trading is a volatile field and chances are you will make more losses than profits. The goal is to make minimal losses and maximize each profit. Research is one of the prime factors that will govern whether you succeed or flunk. From underlying asset knowledge to gauging market conditions - to win, you have to know the A-Z of trading. Stay constantly informed and makes educated decisions. Learn some of the Do's and Don'ts of Stock Market here.
 

2) Don't Follow The Crowd: Copying professional traders will only work so much before you realize you are halfway into trading with no sense of direction! Several individuals suggest following the moves of experts. However, this ought to be done in measured quantities. Uniqueness is necessary not just to succeed, but to even thrive in stocks. Don't be consumed by the herd mentality; take your own calls!
 

3) Don't Hinder From The Path: Starting off, share trading will seem like a fun venture, with lots of play-space. However, each move you make has consequences! To profit in the share market needs you to stay constantly focused and disciplined. From following a strict strategy to withdrawing from tempting deals - be satisfied with the returns you get and stick to the process.
 

4) Never Overtrade: This might sound like a repetitive piece of advice, but has saved many trades! One of the biggest flaws several traders house is the tendency to overtrade. Investing excess trading capital in the hopes of getting back just as much is a fool's move. Contentment is key in trading. Keep strict stop orders in place and follow the 2% capital rule at all times, to ensure the wave you ride doesn't drown you.
 

Winning at equities isn't impossible, with the right tips; you can reach the top slowly, but surely! This isn't rocket-science, succeeding at trading only requires persistence and patience. Want to conquer share trading? Call WesternFX! Our team of forex brokers will assist you through all your ventures and ensure you come out on top!

The Do's and Don'ts of Stock Market Trading in Thailand

Every new trader carries the same question before entering the stock markets - "is trading worth it?" That comes down to how skilled you are! Stock exchange is an incredibly lucrative platform, with healthy liquidity and a steady presence of opportunities. With traders increasing by the day, competition has stifled. Equities have transitioned from a joyride to a slippery slope! Not everybody profits; only 5-10% of traders come out successful. There's lot to learn if you're a beginner.
 

Here are the do's and don'ts of trading shares:

Stock Market Do's and Don'ts

Stock Trading Do’s:

1)  Intense Research: Learning is the crux of trading. From chart patterns to future trends, all speculations done in a trade hinge on research. From markets to brokerage, to top the stock market, you have to research every aspect thoroughly before delving in.
 

2) Small Investments, Smaller Risks: Success doesn't come to those who invest $10,000 at once; it comes to those who invest $1000 in ten well-placed trades. The equities market can be very volatile, and as a beginner you are prone to make mistakes! Starting off, invest in small amounts.
 

3) Diversify: Inside the stock market, you will see there are numerous roads to take. Some more profitable than other, some less riskier. Diversifying is the key to surviving in share trading. Never stick to one stock thinking it will always profit, what goes up always comes down!
 

Stock Trading Don'ts:

1) Don't Get Greedy: Greed begets all forms of hurt, in this case, monetary and emotional! Getting greedy will cost a lot. Keep fixed gains and a risk capital for when things go out of control.
 

2) Don't Think Emotionally: A huge amount of traders conduct trades solely to make up for lost money. The share market is in no way lenient, and actions like these never end well. To succeed at stock exchange, research and practice is needed, not emotional decision-making. Think each move through thoroughly.
 

3) Don't Stagnate: Participating in the same trades like a hundred others will never work out. Agreed, following a professional trader's footsteps is a good decision, but it only works briefly. To truly win at stock exchange, diversity is necessary! Don't tread down same paths, make your own.
 

Gaining mastery over the stock market is a slow process. To become a professional in this field takes years of continuous research. Want to go pro? With an esteemed broker like WesternFX, you can climb the ladder of success in no time! Be it Forex trading or stocks, call us today and hire our top-notch brokerage to dominate the market!

Why Investing in Stock Markets is Advantageous Compared to Others?

Stock exchange can seem boring from the outset. With months of price holding and chart monitoring, newbie’s are usually quick to turn down stocks! However, compared to the other genre, stocks have several advantages! The first best one being – with stocks, patience, and planning will reel in steady profits. The wait a slight drawback for some; but patience always yields fruit!

Here are 4 reasons why you should invest in stock right away:

Advantages of Investing in Stock Market in Thailand

1) High Returns: Though accompanied by hefty risks, stocks are profitable it dealt with properly. Being a risky asset means even on a good day you might incur losses. However, the plus point remains – in long terms trades, stocks tops all others in terms of profits! Long as you get used to the slow pace and heavy market swings, you can steadily sale to an early retirement.

2) Dividends: A quirky trait! Some stocks offer annual dividends to traders. Annually, investors get income in the source of a dividend. What’s the real catch is that – you can get it even if the stock has lost value. Dividends greatly help you buff your investment portfolio.

3) High Liquidity: Not too similar to Forex trading, but stocks have high rates of liquidity due to their spontaneous and active nature. Day in and day out stocks is sold, making the environment volatile, yet fresh! This allows you to cash out as you like; the chances of you finding a buyer are nowhere below 90. Other trades, however, won’t have this!

4) Taxation Delays: Something hugely beneficial once you start trading stocks full-time, taxation delays in stocks come in handy almost always! If the stock you buy sees a hike in value, you need only report your profits gains rather than filing for the earnings. Similarly, during losses on other trades, you can employ the losses to reduce your taxes!

Stock markets are promising in the long run and preferred by the more patient lot. If you’re looking to conquer the stock market in Thailand, WesternFX is your go-to! With our expert traders guiding you, profits are inevitable. Call us today to avail our services.

5 Crucial Forex Risks Every Trader Should Keep In Mind While Trading

Over $5 billion is exchanged every day in the Forex exchange market. Forex trading allows traders to exchange currency pairs by buying low and selling high. With the world economy as diverse as it is, the Forex market is highly unlikely to die down anytime soon! 

Due to the intensive nature of Forex, the assets are classified as the liquid. It is crucial to note that the risks involved are numerous and the slightest slip will result in huge losses.

Here are 5 risks to keep in mind:

1)Leverage Risks: Forex requires its traders to invest an initial amount before going mainstream. This initial investment is called a margin. However due to the nature of this genre, the margin amount might fluctuate, putting the investor in a spot where he has to spend an additional buck to gain leverage.  This act when gone unchecked will lead to substantial losses. 

2)Transaction Risks: The chaotic nature of this market paves way for yet another risk in the form of transactions. Forex works on a 24-hour basis, meaning that during that time period the currency exchange rates might rise/fall randomly. During this time duration, the longer you take to settle a deal since entering it, the longer the risk. 

Forex Trading

3)Interest Rate Risks: A simple fact is that interest rates are proportional to exchange rates. Countries with high interest rates tend to have a stronger currency solely due to the fact that their assets are more sought after, due to the higher return rate (a result of high interests). When these rates fall, investors will no longer have an interest towards them and pull back; resulting in a weak currency. This entire chain affects the Forex market first hand.

4)Country Risk: The state of a country directly influences the nature of its currency. A country with a weak economic background and a crumbling political stronghold will inevitably lead to its currency weakening. Similarly, a country with a steady economic rise, stable political reign and a healthy overall social stability will have a high currency value – like USD, EUR etc. The nature of a country’s background dominates the factors governing the Forex and stock market.

5)Counter Party:Every investment needs an asset, and this asset is provided by the counterparty. The way Forex market works will ensure that there is never a form of surety in the exchanges made. From purchasing currency to selling a pair, there will always be a counterparty risk involved irrespective of how reliable the source is, that’s just the nature of this trade!

The Forex market is one of the markets with the highest monetary exchanges every day. With billions flowing around, you can never be too careful. At WesternFX we specialize in everything Forex. From the first step you take, our assistance will be by your side to make sure the losses are minimal and profits are consequent! Call us today if you’re looking for expert Forex brokers in Thailand.