In the stock market, we know from experience that it is a highly volatile market whose price can rise and fall within hours because of something as simple as a public announcement that the company's CEO is getting a divorce or the company is considering a merger or buy out. We only need to look at what happened with Enron to know how quickly a company's loss of credibility can cause the price of their stock to plummet. If you hold on to stock for the dividends, a plunge in the price will mean that the dividends will be lower, and for those who trade stock on a regular basis, it means the selling price will decrease.

With FOREX trading, the affects of a change in one company's economic growth trend is not going to affect the entire market. That is not to say that if a major corporation suffers a downslide in profits that it won't have an affect on the currency exchange rate, but investors will not feel it in the same way as the stock market does. The currency exchange rate is an overall component of international trade, and as such, each individual trend will have its own small affect, but no one event will cause an upward or downward trend in the entire market. What that means to the FOREX trader is that although one particular currency may have a downward trend that affects the exchange rate for that country's currency, the trader can hold on to that until the rate stabilizes again, and look for more stable currency to purchase.

The currency exchange market is more stable than the stock market, and thus can accommodate some downward trends that the stock market can't. If a company goes bankrupt, it isn't going to have an affect on the price of the currency on the open market unless, of course, that company happens to be one of the larger Fortune 500 companies. In most cases, one company's finances are not going to affect the price of the currency in the company's home country. From a practical standpoint, investing in the FOREX market is more financial feasible by far than investing in the stock market. Not only are the trends more predictable, it's seldom that you will see the price plummet with the speed that has been noted in the stock market where "crashes" have been commonplace since the early 20th century. As long as you don't delve into the FOREX market before you have enough education and training, you will definitely fare better than you will by investing in the stock exchange.