There are more than 870 companies listed in the Shanghai Stock Exchange and more than 2,450 companies listed in the Tokyo Stock Exchange. Those numbers are huge. In these major stock exchanges, only the major players win like the investment houses and investors with staff members to guide them. Some investors employ fresh graduates with Economics or Finance degrees to help them monitor the companies in the stock market. Even if you can access all the available charts and graphs presented by these companies, it is statistically impossible to study and analyze them in just a few hours to make a sound investment judgment. This is not the case for online forex trading.
This is not the case for the foreign exchange market. There are only less than 10 major currencies to play with namely the US dollar, Euro, Japanese Yen, the British Pound Sterling, Swiss Franc, Australian dollar, Swedish Crona, Hongkong Dollar and the Norwegian Krone. When you happen to analyze the market share of the currencies, it seems that the first five currencies (USD, EUR, JPY, GBP and CSF) take more than 80% of the market while the smaller five currencies take 10%. The share of the other minor currencies is only 10%, and recall that there are more than 150 currencies in circulation in the world. Thus, the investor can focus his efforts on the first five or first ten major currencies in his online forex trading. In the stock market, focusing one’s effort in only five companies because it is really tempting to try the other major companies listed in the Stock Exchange.
