Forex Vs Options
Forex vs Options & ETF’s; which would be better to invest on?
I have $3000 to invest, I’m doing research on the mentioned options; which would be better Forex, Options, or ETF’s?
What you have just asked is tantamount to asking :
“Beef vs Fish & Pork, which would be better to eat?”
These are completely different financial instruments that serve very unique and different purposes and it largely depends on what you are trying to achieve. For example, if you want to invest or trade on your opinion that the US dollar will continue to weaken against the Euro, you would of course do FOREX, right? If you want to invest in a certain market or sector movement, you would of course not invest in forex but go for an ETF that represents what you want to speculate in, right?
So, the thing is, it all starts from you, yourself. You need to understand and choose what works for you. There are pros and cons in ALL kinds of financial instruments and people usually specialise deeply in the one that they understand and are able to attain consistent success in.
I know a lot of very rich forex traders and I also know a lot of broke forex traders. I know a lot of very rich option traders and I also know a lot of broke option traders. What is the difference? The difference is knowledge. Those that has deep enough knowledge and experience in a chosen field usually becomes successfull and those lacking of knowledge will usually go broke. The markets is a merciless place where the more knowledge you have, the less risk you will run into.
So if you ask me, the starting point is not in deciding what instrument works for you and trying to gamble your $3000 away but instead continue to invest in more knowledge until you are certain of what you want to do.
I have personally chosen to trade options and have made it my life long career. It has taken me from completely broke to stock market millionaire by the age of 28 and I list some of the books that took me down this path many years ago at http://www.bestoptiontradingbooks.com .
Hope these information helps.
http://www.mastersoequity.com
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