| With the current financial markets being so volatile, a | | | | scheduled and known in advance, you can still get |
| lot of traders have switched from long-term investing | | | | company-specific news releases, which may be |
| to short-term trading, as there's potentially a lot | | | | positive or negative. For example, you might get an |
| more money to be made. However which is more | | | | announced news release mentioning a new contract |
| profitable - forex or shares? | | | | win which could dramatically lift the share price, or |
| Many people are able to make short-term profits | | | | conversely you could get a profit warning completely |
| from both forex and shares. I myself do alright from | | | | out of the blue which could cause the share price to |
| both forex and share trading but in my opinion forex | | | | plunge in a matter of seconds or minutes. |
| trading is the more profitable. This is mainly because | | | | So you can never entirely relax when you are trading |
| the chart movements are more predictable and the | | | | shares because there is always the chance of a |
| major currency pairs conform extremely well to | | | | market-moving announcement being made about the |
| technical analysis. | | | | company. Furthermore although a lot of share price |
| When you trade forex you know pretty much when | | | | graphs do conform fairly well to technical analysis, |
| all the market-moving news announcements and | | | | this certainly isn't always the case, and sometimes |
| economic data releases are scheduled, so you can | | | | the price will be more affected by the wider market. |
| plan in advance to be out of the market when these | | | | So a top FTSE 100 share could be majorly oversold |
| announcements are made. Therefore you can | | | | on a technical basis, but if the FTSE 100 index takes |
| concentrate solely on technical analysis knowing that | | | | a dive, then the share price of the company in |
| the price of the currency pair you are trading is not | | | | question could well continue to fall even further. |
| going to be distorted by any unforeseen | | | | So overall my personal preference when it comes to |
| announcements. There are very occasional | | | | short-term trading is to trade forex because you can |
| exceptions to this rule such as major news stories or | | | | focus entirely on technical analysis, and can base your |
| unscheduled interest rate announcements, for | | | | trading around the scheduled economic data releases. |
| example, that can move the markets but these are | | | | Plus of course the forex pairs, in my experience, |
| rare. | | | | conform slightly better to technical analysis than |
| Unfortunately this is not the case when you are | | | | individual shares. |
| trading shares. Although most trading statements are | | | | |