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Question: Is it better to invest in the share market or the forex market?

(Posted by: anonymous on 2010-01-30 08:08:22)

I have a little money in hand which i want to invest. i thought i would buy some foreign currency but i heard the commission charged by the exchangers is really high. i plan to keep the currency as a long term investment.is it worth it? or should i just go in for trading in the stock market, i was a little apprehensive thinking it involves a lot of monitoring and i do not get much free time due to a hectic schedule. advice anyone? what's a cd? everyone talks about it but i've never understood :(

Posted by: Len on 2010-01-30, 08:45:56

This is approaching the worst possible time to be considering investments in the stock market---at least in our domestic market, that is. We're in the beginning of a rolling pullback. Within a couple of weeks, you'll be hearing about the "correction of 2010. " Back in September of 2009 I began liquidating larger positions in anticipation of what we're now seeing begin but the real unwinding of this most recent bull market rally has yet to get rolling. I'm convinced it will. The group of investors I advise are glad we decided to pull the plug on some equities. We elected to invest heavily in China in pharmaceuticals, agriculture and energy plays. Mind you, we're not afraid. Rather, we believe we understand the forces in play and we know better than to assume things will remain the same without subjecting ourselves to very difficult risk. As for currency trading---it's linked so conspicuously to the country's gross national production, whether commodities, soup & nuts or kitchen appliances you can drive down the street. LOL That said, because we're teetering on the brink of a massive global pullback, this is the worst time to put your money at risk. My bet is that a $10,000 investment today will be worth no more than $8,000 by mid-April or early May. It's one thing to not earn on your money, it's far worse to watch helplessly as your seed money withers, leaving you unable to earn later. I hope I've frightened you. My hope is that you make good choices.

Posted by: Jamie on 2010-01-30, 08:16:11

I dont consider Forex to be a very good investment. I would do stocks, bonds, and funds more

Posted by: Judy on 2010-01-30, 08:16:37

Google forex complaint. It will open your eyes. Less than 10% of the people actually make money on this - I saw that on TV. You have to be smart - really smart to get involved with this. How about buying a cd with it? Only invest money you are willing to gamble with - only if you are willing to lose it ALL. /

Posted by: alcan52 on 2010-01-30, 08:56:14

Buying a foreign currency is not an investment. What you are doing is hedging against your local currency. I do this myself. I personally believe that the US dollar is going to fall across the board against all currencies. This fall will not be limited to other currencies. I believe that the stock markets in the US will decline or at least not gain in real inflation adjusted terms and will in fact loose purchasing power. Because the Baby Boomers are entering retirement and the younger generations entering the workforce are not making enough you save and invest I believe the stock market, real estate markets and bond markets will decline. Who are the new buyers going to be as the Boomers liquidate their savings for them to live on. The only way to keep this game going is for the Fed and the government to inflate the currency thus debasing it. As a result I personally save in Canadian currency, gold, silver and some mutual funds. The bulk of my savings is in gold and silver. I hold 10% of my cash reserves in Canadian dollars. This is a physical holding not electronic. Canada has 1/ 12 the national debt of the US. China and Russia are buying Canadian dollars and Canadian bonds to divest out of the US dollar. As for the commission I don't worry about it. I just add to my Canadian currency reserves on a regular basis. Inveting in the stock market is very risky right now. I think you should have a base of cash reserves that includes some US currency, US currency based savings accounts, physical silver, physical gold, and physical Canadian currency. Once that is in place then stock and bond mutual funds would be good. Then real estate. IMO the markets are too risky. Liquid cash which includes some gold and silver is what you want as a foundation. P.S. I agree 1000% with Len above *****ADDITIONAL DETAILS******* A CD is a certificate of deposit. It is a deposit that is locked up for a set length of time. You can access the money but you will be charged a penalty fee for withdrawing the money before the timed deposit matures. You get a higher interest rate for locking your money up for a longer peroid of time. IMO banks should only be using CD for most deposits and fractional reserve banking should be eliminated. Time deposits are the only way to eliminate fractional reserve banking.

Posted by: mithun on 2010-01-30, 09:12:36

IF you want to invest in forex market you must have millions of Dollars which you can afford to loose. thus to invest in the stock market is comparatively good investment. You can also invest your money in ELSS scheme(Equity linked savings scheme) by which you can also save the tax, MUTUAL Fund is also a good investment, in which the minimum investment is only Rs.500 pm. which is easily affordable and the risk is managed by Fund managers, who invest your money professionally and MOST IMPORTANT INVEST IN 2 TO 3 Mutual fund schemes which should include 3 years lock in period. Apart from that if you want to seriously make money in stocks that become a professional full time trader by the time you will get the rid of trading skills which you could also use in FOREX market as well!! I hope you will invest your money intelligently. Happy investment to you dear friend!

Posted by: Alessandro on 2010-01-30, 09:40:55

Hey, why don’t you try stock robots? I'm assuming you know what I'm talking about. If not, let me take a second to fill you in. There's a site on the internet that claims to have invented a robot that can pick winning stocks. I was skeptical at first but I tried it. And I SWEAR it’s the BEST investment I ever made! I’ve made $47350 so far since I started a few months ago. The best part was I threw my resignation letter at my boss’s face and showed him the middle finger. Check it out here: alturl.com/ 8erb It's guarantee to work! If you don't believe me, read this official report: pennystockprophetreviews.com/

Posted by: oh!my!my! on 2010-01-30, 10:40:14

Never heard anyone making investments in forex. it's for traders. go the stock market way.

Posted by: ThinKabootit on 2010-01-30, 11:00:34

Forex is not "investing " it is gambling that one or more currencies will change their valuations in respect to each other; in order to make money in Forex, someone has to lose that money. Stocks represent a little piece of a business...if the business does well, EVERYONE who owns the stock makes money....that's investing.

Posted by: Sunil on 2010-01-31, 10:58:16

Don't buy currency is really not worth as you think, you can go for stock market buy when nifty touches 4500 or 4200 as this time nifty is on its higher side. for investing you need patience so have patience and invest carefully in area which you have a good knowledge if not then BANK FIX DEPOSIT or RECURRING Schemes are finest. if wanna earn without investment then visit my blog earncashonline-sunil.blogspot.com Feel free to ask for any clarification. Regards Sunil

Posted by: Marron on 2010-02-01, 03:57:29

It is better to invest in the share market....Penny Stock Investing is best among them...Penny stocks denote the very low securities that is charged by the company and that is supposed below $5 per share. Often times these stocks have fallen to a large extent from higher prices and now trade sparsely with low dimensions.Penny stocks are preferred by many investors due to the low price and prospective for quick growth only in some days. But there is also some risk of severe loss and many penny stocks go down their entire price in the long term. Hence new investors should invest with carefulness.

Posted by: Blue FX on 2010-02-01, 21:32:24

Instead of buying a currency and keeping it for the long term until it appreciates in value (assuming that it will), why not invest in the forex spot market? It can offer you 100:1 leverage for your money. Just apply a very strict capital management into your account and you should do fine. Lots of people who lose in forex trading lose because they try to "get rich overnight ". What happens is they lose their money overnight. Applying a very conservative money management system will allow you to take advantage of forex trading. And this includes short-selling, which is not allowed in stock trading. So either way the price of your currency pair goes, either up or down, there is a possibility to gain profit.