Forex Vs. Stocks | SigmaForex

Forex Vs. Stocks:

Forex	Stocks
24 hour market	Open only a few hours a day
Most liquid market in the world	Limited liquidy especially in the smaller capitilzation stocks
High leverage 100:1 leverage on standard-sized accounts	50% leverage at most 2:1 leverage to the average stock investor
Slippage is usually very limited	There is usually slippage on every order
No commissions	Commissions on every trade
Can go long or short easily	Harder to go short with uptick rule and possiblity of borrowed shares being called
Can make as many trades you want	Daytrading limitations on how many trades you can do in a period of time
Limited risk, most forex brokers will automatically close your positions when your account balance goes to zero	It is possible to have a negative balance after an adverse move in the market
Minimum slippage and order errors	More room for slippage and error
Can short-sell anytime	Need to obey uptick rule in order to short-sell
Minimum slippage and order errors	More room for slippage and error

Relative strength Index

Relative Strength Index (RSI) is a popular momentum oscillator developed by J. Welles Wilder.
The RSI indicator ranges in value from 0 to 100, with numbers above 70 indicating overbought conditions and fewer than 30 indicating oversold (Go long when RSI falls below the 30 level and rises back above it) or on a bullish divergence where the first trough is below 30.
If the RSI rises above 30, it is considered bullish, while if the RSI falls below 70, it is considered bearish (Go short when RSI rises above the 70 level and falls back below it
or on a bearish divergence where the first peak is above 70).