Mr.Morvell from Halarona: Stocks vs Forex.What should Internet investor choose?

Mr.Morvell from Halarona: Stocks vs Forex.What should Internet investor choose?
You know sometimes I think that if I sat with some analyst and argue on what is more profitable forex or Stock Market our discussion could be put down in three volumes. However it is necessary to note that such conclusion cannot be made on the profitability of any of those markets.

Here everything depends on the person who holds the investment portfolio or assets. So, for example if somebody comes to our company and asks what is more profitable to invest money in mutual investment fund or to choose trading on Forex as a hobby I always answer that the income from the mutual investment fund will be much higher since your funds are managed by the professionals. 

There is no doubt that in short positions Forex beats the stock market owing to a high volatility of currency rates however this very factor ruins the hopes of the traders for a successful play. People simply cannot understand that even if they follow the analytics keenly and try to conduct a technical analysis there are still a number of reasons that will prevent them even from reducing losses to zero at best. 

So, for example, there is such an important factor as fundamental reasons influencing the Forex market. A single word said by a politician carelessly or some unexpected data on the state of economics in just one country may cause a collapse of currency rate. And this will happen within a few seconds that will cause the mass losses of the traders since the majority of them trade today using an unprofitable leverage. So, recently the traders worldwide watched the state of economy in Hungary. Actually Hungary is just a small country that doesn’t influence the world economy greatly. However it is EU country and everything that happens in this country directly affects euro. And there are hundreds of such examples. Just recall February 18, 2002 when George W. Bush, came to Japan as a president of the USA and in his speech has mixed the words ‘deflation’ and ‘devaluation.’ The market responded immediately with a short-term collapse of Japanese yen. 

I do not refuse that such factors affect the stock market as well however I always said and continue to repeat that in the stock market we deal with the real stocks (or with derivatives) but not with the e-currency as in the virtual market Forex which is still not regulated properly. 

The main thing that the investors should remember is that by choosing mutual investment funds they can enter the market owing to the collective investments made together with the other investors and managed by the professional traders which allow them to become a big and strong player on the stock market. 

However Forex has its own indisputable advantage. First of all it is a pleasant pastime. Having obtained some knowledge and read a few books one can trade short positions during his or her spare time treating it as a hobby. Beside there is also one factor that I consider the most important– a possibility to load the account with virtual currencies. Until recent time this feature gave a priority to Forex market over the stock one. However, very soon Forex will lose this advantage. 

A professional team of Halarona Investments has recently announced the creation of IECTP technology (Integration e-currency into trade platform) which will become a basis for the world’s first mutual investment fund allowing e-currency investments that we are going to launch. It means that very soon, or being more precise within the coming month Halarona Investments will offer the investment market a revolutionary service allowing buying stocks and bonds for e-currency. One more important thing is that it will be the mutual fund managed by the professional traders. Well, if you still hesitate where to invest your free funds from the accounts in various electronic payment systems we advise you to wait a little and then to invest in the stock market.