Mike answers:

First of all – you should focus your learning on one or the other. I’m a trader myself and trading and investing are two totally different things.

There is plenty to learn in both arenas but it is important to first recognize what your overall goal is.

Are you trying to make a living out of it? Trying to get rich? Trying to get better returns over the long term?

From there you can decide wihch vehicle to invest/trade with that best fits your goals.

Mike answers:

Hello Richard,

Well Forex trading, is the simultaneous buying of one currency and selling of another at current prices. For example, buying Gbp/Usd means buying the pound and at the same time selling the dollar, a very simple concept indeed. Currencies as the above are traded in pairs mainly on the interbank (banks) and retail (private traders) market.

Common terms used:

- FX trading
- spot forex

The four major currencies are the Eur/Usd, Gbp/Usd, Usd/Jpy and Usd/Chf. You can easily find your trade among one of those currencies day in day out.

Here are the main differences:

- Market Performance. More volatility in the Currency market making market very liquid
- Low Transaction costs
- Market Transparency
- Trending Market
- No uptick rule
- No bear Market (when one currency goes down the other one is appreciating in value)

Also the leverage in forex is much higher and you need a very small start up capital to get a feel of the currency market. Stock market many a times has a major effect on some currency pairs such as USD and JPY. Using the data of some major stock can to some extent predict the moves in the USD and YEN pairs.

The strategies are the same in many cases. However due to the high liquidity and volatility of the currency pair, you will get far more action in the forex market than the stock market.

I hope that helps if you need any more info you may have a look at the following website www.forex-trading-domain.com

Best of luck

Mike answers:

India Bulls is first then Edelwise. Morningstar does well for mutual funds.

Mike answers:

I trade in microcap companies with high risk. I started a few months ago by following a newsletter. It sends out stock picks before the market opens and i just buy. 9 times out of 10 its a winner but i dont invest too much at a time, maybe 3-5K at a time. So far so good.

Mike answers:

Don’t know how to put it as stock market is totally uncertain. There are some methods to predict the trend for stock market and not a single method is totally reliable. However i have found astrology as comparatively effective tool in knowing the trend for stock market. Here’s one website which provides daily stock market forecast called New Age Astro, with reasonable accuracy