Which is better – stocks, derivatives, commodities or forex trading.This is a question many people ask me and my answer is the same – you do not trade any of them, just the short and the long side of the market and a leveraged asset like commodity, option or forex helps us to manage a bigger risk with less capital.
An asset is as good as the skill you have to manage it’s risk. Do not rush to forex just because it gives 1:200 leverage. Ask yourself – do I have the required skill to trade such a high leverage.Stocks are good to create wealth and other products are useful to generate regular income. As soon as you enter a trade, the only thing guaranteed is your money at total risk, profit or loss is dependent on your skill.