THE COMPARISON FOREX AND STOCK

If you interest in financial market , specially in FOREX or Stock Market , it is important for you to know the difference or characteristic from each financial market product.

In this article , I make few comparison between FOREX and Stock Market as follows :

Trading Time :

In stock market trading , you can trade only during market hours. It means whatever position you are , either profit / loss , you must closed your transaction before market trading hours are closed. If you don’t close your position , than you will face “gap” risk by the next day. But in FOREX you can trade almost for 24 hours except Saturday and Sunday of course. It means, for example if you loose in New York market , than you still have opportunities in Asia or Australia market.


Characteristic :

In Stock Market , price of a stock may drop suddenly and falling down very deep ( we can call it “gap” ) , and than get stuck in its below level for a long time without any significant fluctuation. But in FOREX , a currency will keep fluctuated as international trade it self. A country will not let his currency falling down too deep or raising up too high , in order to keep its international trade balance .


Two Ways Trading Directions :

In local Stock trading, you can entry Sell position only if you already owned that Stock. It means you must Buy the Stock first. After that you can Sell it. The different in FOREX is you can do trading in two directions. For example ; you may entry Sell position , although you do not Buy it first.


Prediction :

To predict stock price of a company is not an easy job. Although you can evaluate a financial ratio analysis from published financial report , but remember financial report is a part of past period. The more important thing is how can you predict the future ?

For example , if you want to buy stock from a company dealing in Crude Palm Oil ( CPO ) . You need to know ; CPO exporter countries , how CPO’s process since park until crop , CPO’s characteristic quality , world CPO’s supply-demand , CPO’s price fluctuation either in exporter or importer countries , etc. Now you can conclude to become a successful stock trader , it’s so many things to learn just for one commodity . it’s too complicated.

Still it’s not secure you yet . It’s also important kira-kira “ what “Corporate Action “ will be taken by the company ? Is the company able to fulfil its liabilities ? You must carefully evaluate.

Trading in FOREX is not that complicated. By using Technical and Fundamental Analysis , read about news and economic calendar , following discussion in Forum , all of that thing you can find easily in internet. If you like to learn, then by times you will be understand how to predict trend of currency movement and make your trading plan by yourself.


Trading Failure :

It may happen a company fall in deep loss , and brings deep impact for it stock price . Or a company who break the stock market rule . In this case , stock may be “delisting” and pulled out from regular stock market. Of Course it will put investors in deep losses as well. In FOREX market , things like that would not happened because only big countries currency can be trade in universal common FOREX market.

yang diperdgangkan is currency utama world from trustworthy countries . Not a company per company. So in FOREX market , There is no “delisting” word.


HIMAWAN WARDHANA

FOREX TRADING SIGNAL WEEKLY JUNE 22 – 26 2009

GBP / USD

Support : 1.6239

Resistance : 1.6582

Trading Range : 1.6218 – 1.6582 . By the end of this week , likely it
seems trading range will be in 1.6110 – 1.6430

Trend : Globally trend seems Potential Down
But if trend moving up and breaking level 1.6545, then
level 1.6655 will be next target.
If trend moving down and breaking 1.6325 , then level
1.6110 will be next target

HIMAWAN FOREX method :

SUPPORT line is placed in level where two Moving Average indicator are crossed each other as seems in point A , and B . In this level also CANDLE STICK tail hit middle Bolinger in June 20, as seems in point C.

RESISTANCE line is placed in level where CANDLE STICK upside body hit upline Bolinger in June 2 .

Trend Line below ( in white color ) start in point B where two Moving Average are crossed each other . This point B also in SUPPORT line level. Grab line toward C point , this line shows trend will be potential down turn .

VOLUME indicator shows red lines ( short position ) appears continuously and it shows trend is potential down turn.

To predict trading level range area , I’m using FIBONACCI lines ;
-FIBO 100.0 in level 1.6403 where Moving Average are crossing 2 times
-FIBO 0.0 in level 1.6000 in par of Bolinger below line
-FIBO 161.8 in level 1.6655 in par of Bolinger upper line

HIMAWAN FOREX

HIMAWAN FOREX is a simply ways to do FOREX Technical Analysis by using few indicator tools which already provided in Meta Trader 4 , and combining with Economic Calendar as Fundamental Analysis . It’s very logic and can be easily learned. More often you follow my Blog , do practise with free Meta Trader 4 your self , than more faster you can understand how HIMAWAN FOREX’s works.