Forex V/S Stocks – Which One Should I Choose?

Share This: ContentsForex V/S Stocks – Which One Should I Choose?Forex or StocksForex & Stock Markets Have A Huge Difference Hours Of Trading Difference At Leverage Comparing At Liquidity Forex V/S Stocks – Which One Should I Choose?   Forex or Stocks Forex or Stocks – which one should I choose? It is a common question that often arises in the minds of most of the newbies in the stock market and money market. Forex which stands for foreign exchange has earned a huge popularity in the trading world and in recent years, a quick shift has been observed for investors from stocks to forex. So, what is the reason that encourages investors to take interest in Forex? Or, is it actually a good bet to play in Forex than stocks? There are several questions that strike in the minds of new traders and finding a right answer can certainly bring peace in this situation. So, Forex V/s stocks is certainly a great topic which we will cover in this article and make you aware of which should you choose for your investments or for trading. Forex & Stock Markets Have A Huge Difference It is a reality that there are several differences lie in the forex and stock markets. Due to those differences, we can easily present individual aspects and qualities of each market to traders. Knowing these aspects, one can certainly make a wise decision for his or her investment in forex or stock markets. The contribution of these aspects sums up to a huge probability and opportunities to grow your profit in a small period of time. Though the expert traders believe that forex is like a sword having double edges and if you fail in handling it, it can bring a huge defeat to you and can certainly lead you to your profit as well as capital loss. So, we cannot deny with the risk involved in forex market and considering that risk, you should think of investing in the forex. Although we highlighted the risk factor of forex market to you, it does not mean the stock market is fully safe and has no risk factor to care about. But, there are certain risks that are associated with market fluctuation and commodity price fluctuations which can be handled by following global market events and expert stock market advisers at some level. Just like risk factor, there are several other things on which we can evaluate forex and stock markets individually. So, let’s find out other major aspects in two of them that make one better on another. Hours Of Trading Forex market provides several opportunities for traders to trade due to its broadly open trading time. In this market, traders usually make transactions from around 7 PM EST to around 3 PM EST. The forex market remains open from Sunday to Monday always. Though in the stock market, you are allowed to trade in pre-fixed time slot between 9 AM EST to 4 PM EST […]

USD/CAD Technical Analysis: CAD Bulls Likely In Charge below 1.4325 (Levels)

Share This: DailyFX.com – Interested In our Analyst’s Longer-Term Oil Outlook, be sure to sign up for our free oil guide here. Talking Points: USD/CAD Technical Strategy: Break through 1.4325 Would Encourage CAD Buying CAD Has Moved To Strongest Currency in G10, Was Weakest 2 Weeks Ago Oil Direction Increasingly Volatile As Trader’s Question if Jan. 20 Was Low The Story in USDCAD – Is the CAD Drop Done? The Canadian Dollar currently sits atop a strength index of G10 Currencies in a sudden two-week shift of fortunes in the FX market. Two weeks ago, the Canadian Dollar was falling through the floor of chart price support alongside WTI Crude Oil. Now, CAD has been rallying after reversing its longest losing streak since 1971, and traders are understandably wondering if more CAD strength is ahead. Market forces will continue to drive USDCAD in the short-term, but traders should remain cognizant of the Friday’s job report that could affect risk-appetite and overt focus on Oil’s next move. However, the ‘Blame it on Crude’ environment seems to be fading for now. For one, the lack of dovishness from the BoC to cut rates further has lessened the spread between the US/CA 2 years Government yield spread, which widened as the price of USD/CAD moved higher. Second, markets have been re-adjusting to the risk-reversal since the January 20 low in multiple markets (stocks, commodities, and many currencies), which seems to align CAD with risk sentiment as well. Therefore, if risk-off resumes and equities drop, USDCAD could start breaking higher, however, the CAD bears may have started hibernating now that the BoC is not in a hurry to cut rates. Key Levels after the Plunge The focal point on the chart now is a bracket. First, given the sharp ~750+ pip reversal, support looks to be at the 2016 YTD low at 1.3811 and the 3-month channel support/ trendline off the lows, as well as the 55-DMA & 50% retracement of the October-January range near 1.3760/1.3830. A strong turn off these levels higher should turn attention back to the upper-half of the channel, which would favor a move back above 1.4500. Resistance now looks to be at the lower high of 1.4325 where CAD Bulls recent reclaimed their bragging rights. A break back above 1.4325 would open up the view that the channel is holding, and price may likely resume higher. In addition, while the relationship has broken down a bit recently, a sustained move lower in WTI Crude Oil below $30bbl again would also turn the focus toward medium-term resistance on USD/CAD. Sentiment Beginning to Favor CAD Bulls When looking at sentiment, Crowd Sentiment Extremes Have Plummeted on USD/CAD relative to recent positioning, which shows that traders do not think USD/CAD is as overbought as they once did. On the sentiment chart below, you will also notice that there are the fewest number of USD/CAD bears since early December. We use our SSI as a contrarian indicator to price action, and the fact […]

Silver Should Be Trading At $14.93 According to Gold

Share This: DailyFX.com – The technical outlook is little changed for silver. The overall trend is bullish above the January 22 low of $14 and the next resistance level and target for bullish traders is the December 7 high of $14.58, a target silver should be able to reach so long as its correlation to the price of gold holds up. My latest fair-value-estimate suggests that silver should be trading at $14.93 on gold prices trading at or above $1124.5. Traders projecting higher prices and expecting the January 22 low of $14 to hold as a support are probably accumulating silver at current prices, as the risk/reward ratio currently favors long positions. The potential loss is 25 cents vs. a potential gain of 33 cents if the price reaches the December high of 14.58, and 65 cents if the price reaches 14.90 over the coming weeks. Recent Macro Data Is Less favorable Yesterday, U.S. Core PCE rose by 1.4% YoY, from 1.3%, while headline PCE climbed to 0.6% YoY from 0.4%. This is encouraging news for the Fed’s case for raising rates and represents the Dollar being bullish and silver being bearish. Also in the U.S., the ISM report for January rose to 48.2 from 48, with the sub-components showing tentative signs of stabilization for the headline index over the coming months. New orders increased to 51.5 from 48.8, while Customer inventories remained unchanged at 51.5.This may reduce the need for haven assets such as silver and gold, if the ISM does indeed head higher over the coming months, rebounding from low levels. Boost your trading skills and pick up one of our 16 different Trading Guides Silver Prices | FXCM: XAG/USD Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano — Written by Alejandro Zambrano, Market Analyst for DailyFX.com Contact and follow Alejandro on Twitter: @AlexFX00 Struggling with Trading? Join a London Seminar original sourceDailyFX.com – The technical outlook is little changed for silver. The overall trend is bullish above the January 22 low of $14 and the next resistance level and target for bullish traders is the December 7 high of $14.58, a target silver should be able to reach so long as its correlation to the price of gold holds up. My latest fair-value-estimate suggests that silver should be trading at $14.93 on gold prices trading at or above $1124.5. Traders projecting higher prices and expecting the January 22 low of $14 to hold as a support are probably accumulating silver at current prices, as the risk/reward ratio currently favors long positions. The potential loss is 25 cents vs. a potential gain of 33 cents if the price reaches the December high of 14.58, and 65 cents if the price reaches 14.90 over the coming weeks. Recent Macro Data Is Less favorable Yesterday, U.S. Core PCE rose by 1.4% YoY, from 1.3%, while headline PCE climbed to 0.6% YoY from 0.4%. This is encouraging news for the Fed’s case for raising rates and represents the Dollar being […]

USD/JPY Weakness to Persist on Wait-and-See Kuroda

Share This: DailyFX.com – Talking Points: – USD/JPY Weakness to Persist on Wait-and-See Kuroda; RSI Trigger in Focus. – NZD/USD to Eye Top of Range on Strong New Zealand Employment Report. – USDOLLAR to Face Fed Rhetoric, Slowing ISM Non-Manufacturing Survey. For more updates, sign up for David’s e-mail distribution list. USD/JPY Chart – Created Using FXCM Marketscope 2.0 Despite the surprise move by the Bank of Japan (BoJ), the near-term pullback in USD/JPY may gather pace over the coming days should the Relative Strength Index (RSI) fail to preserve the bullish formation carried over from the previous month; break/close below 120.10 (61.8% retracement) to 120.20 (50% expansion) may open up the next key downside hurdle around 119.00 (161.8% expansion) to 119.10 (38.2% expansion). Even though the BoJ continues to push monetary policy into uncharted territory, the fresh comments from Governor Haruhiko Kuroda may ultimately spur a larger pullback in the dollar-yen should the central bank head endorse a wait-and-see approach after implementing negative interest rates in January. The DailyFX Speculative Sentiment Index (SSI) shows retail crowd has flipped back to net-long USD/JPY on January 29, with the ratio working its way back towards recent extremes as it climbs to 1.40 (58% of traders are long). NZD/USD Despite the 10.4% decline in Whole Milk Powder prices at the Global Dairy Trade auction, NZD/USD looks poised to retain the range-bound price action going into New Zealand’s 4Q Employment report; may see a bullish reaction as the region is anticipated to mark a 0.8% rebound in job growth. Even though the Reserve Bank of New Zealand (RBNZ) keeps the door open to further reduce the benchmark interest rate, fresh comments from Governor Graeme Wheeler may continue to produce range-bound prices should the central bank head endorse a wait-and-see approach. Will keep a close eye on the near-term range amid the failed attempt to close above 0.6570 (100% expansion) to 0.6590 (38.2% retracement), with support coming in around 0.6370 (50% retracement) to 0.6400 (61.8% retracement). Join DailyFX on Demand for Real-Time SSI Updates Across the Majors! USDOLLAR(Ticker: USDollar): Index Last High Low Daily Change (%) Daily Range (% of ATR) DJ-FXCM Dollar Index 12237.57 12255.1 12224.5 0.04 73.74% Chart – Created Using FXCM Marketscope 2.0 The USDOLLAR may continue to face range-bound prices ahead of the highly anticipated U.S. Non-Farm Payrolls (NFP) report as the ISM Non-Manufacturing survey is anticipated to show a slower expansion in service-based activity; will keep a close eye on the employment component to see how NFP expectations develop. With Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester, both 2016-voting members on the Federal Open Market Committee (FOMC), scheduled to speak over the coming days, the fresh comments may impact the near-term outlook for the greenback as market participants gauge the timing of the next rate-hike. Will continue to watch the range-bound price action as the USDOLLAR remains capped around 12,273 (161.8% expansion) to 12,296 (100% expansion), with former resistance around 12,176 (78.6% expansion) to […]

US DOLLAR Technical Analysis: The Dollar Bull Dilemma

Share This: DailyFX.com – Interested In our Analyst’s Longer-Term Dollar Outlook? Be sure to sign up for our free dollar guide here. Talking Points: US Dollar Technical Strategy: ST Weakness Favored Toward 34-DMA, LT Bull View Intact Lack of FX Volatility Has Presented ‘Reversion to Mean’ Environment Seasonal Tendencies Favor USD Weakness for February One can easily see that the trend on US Dollar is higher since October 15. However, one likely has a tougher time finding a good time to buy the US Dollar. This volatility within the uptrend has become the Dollar Dilemma of late whereas the uptrend continues as the US Dollar has strengthened over the last five weeks against the GBP, JPY, & AUD while treading water for now against the EUR. For now, the focus will remain on the red corrective price channel within the larger uptrend. Channels within channels can help you see the big picture while not losing sight of the daily or weekly theme in markets. The pivots help pave the way for the corrective channel and opens the view that we could soon be testing support once again before the next Dollar Bull Run takes hold. Aside from the JPY plummet on negative interest rates last week, the US Dollar has had a tough go since many markets (equities, energy, commodity FX) may have put in a bottom on January 20. Key Levels: Watch the Recent Pivot to Hold For now, the key support level on the US Dollar has turned to a confluence of support at 12,200. This level comprises of the 34-DMA, the recent price pivot before BoJ acted, as well as near bullish channel support. Short-term resistance will focus on the weekly pivot at the zone of 12,250-12,271. A break above that zone could open the floodgates toward the new highs, and the longer-term bull channel will resume. A big development has also been the drop in US 2yr yields, which today retraced 61.8% of its 4Q rise. Given that the US Dollar has dropped more in such a drop in expectations for a rate hike and the potential for the European Central Bank to follow the BoJ in March, the Dollar dominance could continue throughout Q1 2016. However, if support fails to hold at 12,200, a deeper retracement could be afoot. To see how FXCM traders are positioned, click here. T.Y. original sourceDailyFX.com – Interested In our Analyst’s Longer-Term Dollar Outlook? Be sure to sign up for our free dollar guide here. Talking Points: US Dollar Technical Strategy: ST Weakness Favored Toward 34-DMA, LT Bull View Intact Lack of FX Volatility Has Presented ‘Reversion to Mean’ Environment Seasonal Tendencies Favor USD Weakness for February One can easily see that the trend on US Dollar is higher since October 15. However, one likely has a tougher time finding a good time to buy the US Dollar. This volatility within the uptrend has become the Dollar Dilemma of late whereas the uptrend continues as the US Dollar has strengthened […]

Silver and Platinum Price Action Not Supporting Gold Fervor

Share This: DailyFX.com – Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time Talking Points Gold testing 200-day moving average Other metals remain stuck in bearish consolidation patterns Silver and Platinum Price Action Not Supporting Gold Fervor A lot has been made of the recent rally in Gold. I am still pretty skeptical. Now do not get me wrong I am pretty positive on the metal in a longer-term sense. In fact it is my trade of the year for 2016 (read HERE), but I have seen this movie so many times before over the past few years. The rally that has unfolded from mid-December came from a very oversold condition. It has not tested anything meaningful on the upside in terms of resistance really until yesterday. The 200-day moving average and several key Fibonacci retracements all converge around 1130/35 and this should be the first real test for the metal. If it can get through there then we can start talking more seriously about a bona fide reversal, but even if that occurs I still think spot needs to overcome the October highs around 1190 to signal any real sort of true behavioral change. I say that because the bear market in Gold since 2011 has been littered with plenty of rally attempts that never seem to muster enough strength to overcome a prior important swing point high. If Gold can manage that then it will probably be enough evidence that the winds are truly beginning to shift in the metal. Want to see how other traders in the market are positioned? Find out HERE A big reason I have been skeptical of this rally in Gold outside of timing (several important timing relationships around the start of Q2 seem to favor another leg down), is the behavior in other precious metals. The rally in Silver has been less than impressive, as has the action in Platinum. Like Gold, both have been in strong bear markets since 2011. The action here in both looks more like a bearish consolidation than a base before turning sharply higher. Things can change obviously, but the burden of proof is still squarely on the bulls. In Silver over 14.60 opens the door to a more important upside correction, but only above 15.40 material changes the medium-term technical landscape. The same can be said for Platinum with traction above 896 needed to trigger a more important corrective process, but only a move over 926 would materially alter the negative technical picture. What is the #1 mistake FX traders make? Find out HERE. — Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX original sourceDailyFX.com – Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time Talking Points Gold testing 200-day moving average Other […]

USD/CHF Double Inside Day; Ready to Rip or Slip

Share This: DailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The most recent USD/CHF comment noted that “1.0212/40 (78.6% retrace and Jan 2015 high) is the next area that could derail the rally.” USD/CHF is having trouble at the mentioned zone. A double inside day indicates a tight short term consolidation that could lead to the next directional move. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original sourceDailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The most recent USD/CHF comment noted that “1.0212/40 (78.6% retrace and Jan 2015 high) is the next area that could derail the rally.” USD/CHF is having trouble at the mentioned zone. A double inside day indicates a tight short term consolidation that could lead to the next directional move. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original source Source from..DailyFX

USD/CAD-Watch for a Failed Rally

Share This: DailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The last update noted that “a move back into the channel would suggest that trade in recent weeks was some sort of a ‘blow-off’ top.” USD/CAD has traded back into the channel, which suggests that suspicions of a blow-off top were correct. The implication is that USD/CAD has topped and is heading lower. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original sourceDailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The last update noted that “a move back into the channel would suggest that trade in recent weeks was some sort of a ‘blow-off’ top.” USD/CAD has traded back into the channel, which suggests that suspicions of a blow-off top were correct. The implication is that USD/CAD has topped and is heading lower. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original source Source from..DailyFX

USD/JPY Rally Fails at Former Support

Share This: DailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The most recent comments were that USD/JPY “topped nearly 7 months ago at an even longer term trendline. All of this doesn’t mean that USD/JPY can’t or won’t experience rallies. All of this does mean that rallies should be sold. Be patient and seek high reward/risk opportunities, as outlined in the popular TOST series.” The rally into the 200 day average and former slope support (October 2014 low, August 2015 low, and October 2015 low) was a gift to those looking at positioning on the short side. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original sourceDailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -The most recent comments were that USD/JPY “topped nearly 7 months ago at an even longer term trendline. All of this doesn’t mean that USD/JPY can’t or won’t experience rallies. All of this does mean that rallies should be sold. Be patient and seek high reward/risk opportunities, as outlined in the popular TOST series.” The rally into the 200 day average and former slope support (October 2014 low, August 2015 low, and October 2015 low) was a gift to those looking at positioning on the short side. For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original source Source from..DailyFX

NZD/USD Tight Consolidation

Share This: DailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -Since breaking the September-November trendline, NZD/USD triggered a double top with weakness below the November low. However, the 1/20 reversal and subsequent follow through casts double on the validity of the downside…at least in the near term. With price continuing to hold the November low, beware of a run on .6615 or so (support from October). For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original sourceDailyFX.com – Daily Chart Prepared by Jamie Saettele, CMT Automate trades with Mirror Trader and see ideas on other USD crosses -Since breaking the September-November trendline, NZD/USD triggered a double top with weakness below the November low. However, the 1/20 reversal and subsequent follow through casts double on the validity of the downside…at least in the near term. With price continuing to hold the November low, beware of a run on .6615 or so (support from October). For more analysis and trade setups (exact entry and exit), visit SB Trade Desk original source Source from..DailyFX