Should I be trading Forex or stocks?
You know how to trade a scientifically tested strategy.
#1. You can pick out a scientifically valid long term pattern that dictates where the market is going to move for the next 100 days.
#2. You can spot a “coil” or energy, using the 3-bar patterns (also scientifically tested).
#3. You know how to manage your risk and place pending orders so that the market confirms your entry.
However, now you have to decide how you are going to apply this knowledge.
Should you be using it to trade stocks, or Forex?
Let’s look at the answer below.
Although all markets generally react the same to specific patterns, because you have buyers and sellers in each one…
They are fairly different.
Have a look at what’s happened the last 30 years to the S&P 500:
There have only really been six good reversals.
Currencies on the other hand reverse all the time. This is an image ofEURUSD over the same time period.
Well, because currencies are trading again stone another and they don’t tend to drop to zero (like some stocks) or shoot up thousands of percent (like some other stocks).
The value of a particular currency is always derived from another currency.
Therefore currencies tend trade back to their average value over time.
If there is a big drop BELOW a certain value, we know that there is a chance it’ll eventually turn back up.
Here’s another example. This is the USDJPY(the U.S. Dollar vs The Japanese Yen) over a 20 year period.
Let’s compare that to an individual stock,like Moderna. It skyrocketed and didn’t really look back… giving you feweropportunities to enter the trade.
However, the few times it did reverse it moved a lot more and yielded some stunning profits.
Even though they don’t reverse often… there are thousands upon thousands of stocks to pick from.
What it means is this:
Stocks move faster and yield bigger profits as price explodes out and never looks back. You have more choice and more opportunity to win.
While Forex has about 30 markets you can trade and more gentle and reliable reversals.
However, that doesn’t mean you should ditch your Forex account.
No sir. And here’s why.
Many people still make bank from the Forex markets. This is a screenshot from a guy called Ting.
I’ll attach his full email at the bottom in the “P.S.” section.
Now, if Ting traded the stock market as well, he could probably have made more money.
But, is it truly necessary?
Do you really have to trade every single market every single time?
Not if it stresses you out. Not if it doesn’t fit with your schedule.
I trade twice per day, every single day.
However, my trading makes me millions of dollars per year.
You need to choose:
- Do I want to trade just once per week? - then trade the stock and Forex markets together on long term time frames.
- Do I want to trade once per day for 10 minutes? - Then trade both markets on the daily timeframes.
- Do I want to trade twice per day at the stock market open and end of day? - Then still trade the daily timeframes, but take full blown advantage of what this strategy can offer you.
You’ll find the email I got fromTing.
I'll be going live in the markets soon, trade with me live for four days straight as I execute scientifically tested trading strategies in front of your eyes.
The 4 Day Event Starts 13th - 16th September 2021 - 4.30 pm EST
Find out more and register here: https://lp.thepatterntrader.com/4-day-trading/join/