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Forex vs Stock in RSA
- Thread starter rorye
- Start date
Visser
Expert Member
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Educate yourself in forex trading.
South Africa is close to collapsing. The stock exchange has been trading sideways, as expected, for some years now and it is about to get even worse. You will not be making any money in stocks.
Forex is a tough market to crack, and it's easy to lose money quickly, whereas with stocks there's at least some stability in the top performers. Also, there's a number of locally listed companies that have a large portion of their business activities/revenue outside of South Africa. That means you benefit from both their business side (assuming they're healthy and make a profit), and if the Rand slumps.
Maybe run some demo accounts for a while to see what it's like, or split up some money between local shares with international exposure and forex trading.
It's worth mentioning that I'm not a seasoned trader or anything, but this is the information I've picked up while researching myself.
This is as I've thought, too. Thank you so much for the most valuable input.
Yes, I've seen the potential to lose in forex and too be honest, because of the availability of content on stock trading I'd prefer day trading but we're only able to effectively trade on the JSE as South Africans, right?
Why are you limiting the view only on SA stock market, there is abundance of choice internationally. Just need to find a good broker.
If we look at stock as being high risk, forex is just pure speculation.
X88Bass
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Stocks - High capital to make a certain decent amount or trade for living
Forex - Minimum amount (But you'll need to keep your account/trades running)
Study either and you'll have an understanding of how the markets work
Forex - Minimum amount (But you'll need to keep your account/trades running)
Study either and you'll have an understanding of how the markets work
The key thing to keep in mind is that you really don’t want to trade unless you have an edge of some sort (eg, great understanding of economic factors that affect particular currencies, deep knowledge of an industry sector, or exceptional quantitative skills, etc.).
If you just watch the markets for a few days and think you are seeing patterns or try to follow trends, you will eventually lose your money.
If you just watch the markets for a few days and think you are seeing patterns or try to follow trends, you will eventually lose your money.
You can trade offshore too - but you need an offshore account through a broker. There are a few offshore guys with physical presence in SA, look out for what they charge on commission and then decide