Alan Solarsh argues forex beats stocks for short-term trades because of higher volatility, greater leverage, and lower entry costs. He walks through why bigger pip moves matter for his strategy and promotes a broker with 22 million traders.
January 20, 2023
Belize, Cyprus, Australia, and South Africa.
14 years.
22 million.
Stocks: 1:5 leverage; Forex: starting at 1:3000.
I get this question quite a lot. Why is the forex trading better than stocks? So before I answer the question, please like subscribe and comment on my videos. So when you do that, you get notified when I bring out new videos. And also when you like and subscribe and comment, it helps YouTube with the algorithm to promote the video to other interested people that are interested in the same topics as you. So let's get straight into the video. So there's a number of reasons why I prefer to trade forex over stock. And the main reason is that the forex market moves a lot quicker than the stock market. There's a lot more volatility in forex than there is on stocks. I like to do trades that last between one to two weeks. I can make 250 pips, which is quite a lot of money relative to the stock market. That only moves a couple of maybe one or two to five dollars a day per stock. There's also thousands and thousands of stocks to choose from. And you need to be quite a good analyst, a technical analyst, to understand how to read a balance sheet. And also you need to know a little bit about the economies of those different countries to understand why that would be a good stock over another stock. The rest would be absolute speculation. And I don't like to speculate. So I'm a technical trader. I teach people how to trade based on candlestick analysis. My website is below. So in the comment section you can see my link to my Learn to read a forex chart website which is 100% free. There you'll sign up to our broker. We use a broker that's got 14 years trading history. They licensed in four countries, Belize, Cyprus, Australia and South Africa. They've got 22 million traders worldwide. They're probably one of the biggest brokers in the world, highly trusted. And that's the broker that I use. The link to that broker is in the description as well. So the other reason I prefer to trade forex over stock is because of the leverage. The leverage in forex is a lot higher than it is in the stock market. Now the broker that I use does have stocks as an option on MetaTrader 5, but the leverage is 1 to 5, whereas the leverage on Forex is 1 starts at 1 to 3000. Now the other reason why you would also prefer to trade the forex market over stocks is because the barrier to entry with the forex market is a lot lower than it is on the stock market. So generally when you deal with a broker or you want to trade stocks on your own or you go through a bank and you use their platform, you need to invest quite a lot of money. Usually a broker won't take you on without having a minimum of about $10,000 or 100,000 rand. Now in Forex, it's a lot easier. The barrier to entry in Forex is approximately 10, $10. So you can start off with $10. I don't recommend that you start off with $10, but that would be the minimum. So those are the barriers to entry. So if you're a new trader and you don't know how to do the fundamentals, which is understanding the news, understanding economies and the.
Then it would be better to do the technical analysis. Now the technical analysis that I teach works on both forex, commodities, stocks, bonds, anything to do with a financial instrument. My education on technical analysis will help you to better perform, to make more profit, and also to approach your trading with a more conservative outlook. So I hope that you found this video interesting. Please like subscribe and comment on my video. That way you'll get notified when I get when I come out with a new video. And it also helps the algorithm in YouTube to promote this video to other people that are interested in the same topic as you. So please like subscribe and comment on the video and I'll see you on my next video.
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