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Why should you invest in the Equity Market ?

Why should you invest in the Equity Market ?    

In the current scenario, investing in both equity and forex can be quite profitable. But before you can reap huge financial gains you need to understand the basics of both equity and forex trading. If you can play your cards properly in the equity market, or invest cleverly in companies, which can give high returns, then the equity market will generate sustainable profit against your investment.  

Difference between the Equity and Forex

When planning to invest in the forex market, the trader must know or understand the basics of intraday or day trading. Because currency exchange rates can vary throughout the day, and a clear understanding of the exchange rates of different currencies against the Euro or Dollar is essential. Currency trading is dependent on volatility; a fast price change can make or break your investment.
  Only high-risk traders rely on forex trading and small investors rely on long-term and less risky investments. Such investors tend to invest in the equity market or stocks. If an investor wants to invest a part of his income by buying stocks of different companies, he or she needs to study the company's financial history, its current status and how it is expected to perform with its future investments. Keeping these in mind, an investor a can make highly profitable long-term investments.  

Equity pays long-term dividends

Investing in big blue chip companies or well-heeled companies can bring you year-end dividends. When the company makes a profit, the company may reinvest some amount of the profit in the business itself and some part of the profit is distributed amongst its investors or shareholders. This way the company retain its long-time shareholders. The dividends for large shareholders can be quite profitable as they are distributed by the proportion of equity an investor is holding in the company.   Dividends or over-night dividends are also applicable for forex trading, where an overnight interest rate is applied, for holding a few specific currencies. The rates vary according to different currencies, but for a long time investor, this option is not that viable. The trader needs to fathom the high volatility of the forex & the dynamics of the money market.  

Equity market for long-term investors

For long-term investors and day-to-day traders, both the equity market and online forex market can bring in profits, if investments are made judiciously, but for low-risk individuals who prefer to invest occasionally, investing in company stocks or equity would be a better choice as forex trading can change due to multiple reasons, including socio-political reasons. 

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