GET TO KNOW 2020’S TOP FINANCIAL MARKETS FOR TRADING

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As the new decade comes rolling in, it is important that you have your finger on the pulse of the top financial markets for trading. Expert investment strategy groups suggest that, for 2020, it’s going to be extremely advantageous to focus on stocks with high projected earnings growth.

There are a number of market-shaking events that shaped the past decade, and 2020 is set to become even more remarkable for the financial markets. This is due to the fact that there are currently so many impactful events across the Globe. These include things such as Brexit in the UK, which will also affect Europe and of course the US presidential election, both currently making waves in the financial markets.

Whether you are planning to venture into a new career, going full-time into trading, or are planning on something a little more passive, it is essential that you get to know the top financial markets for trading in the coming year. If you are an advanced trader or just a beginner trader and you are not quite sure where to start, don’t panic just yet! We have crafted this quick crash-course to set you on the right path to trading. Here are our top Financial markets you should be trading in 2020.

The Current financial markets in 2020.

In a nutshell, a financial market is a market in which buyers and sellers have the platform to trade foreign exchange, commodities, financial securities, among many other freely exchangeable items. The prices in the financial markets are determined by market forces, and this is where trading happens on both a national and global level.

It is the main job of traders to buy and sell securities in the market in order to gain potential profit, all while doing their best to minimise risk. The common trend among seasoned traders is that they focus on a single financial market, and it can be quite unlikely that traders tend to dabble in varying ones. Having a solid understanding of a particular financial market and staying up to date with the latest impactful news can be quite demanding, this is why traders tend to specialise. Especially traders who are just starting out or are looking for a passive return on their investment.

However, even if you decide to put all your attention in just one financial market, it’s still of great benefit if you have an overview of all the financial markets that are available for trading. This is because they all function in a sort of web that can impact one another. Awareness is key and knowing about and understanding all the markets will give you an extra advantage. Thus, we will then give you a bird’s eye view of all the most important financial markets out there, and what their global roles are.

LEARN TO TRADE THE TOP FINANCIAL MARKETS IN 2020!

How are financial markets different?

The most important term here is “market” because the financial market functions pretty much the same way. Markets are where goods and products are sold and bought, but the difference lies in what is being exchanged; In financial markets, you would see the act of buying, holding, and selling of financial securities, instruments, and products instead of food, clothing, or any other tangible product or service.

It is a common misconception among beginners that there is only one financial market but, the truth is that they have grown exponentially over the years! Here are some of the most common kind of financial markets:

  • Derivatives markets
  • Foreign Exchange market / FX
  • Capital markets
  • Commodity markets
  • Cryptocurrency markets
  • Money markets
  • Insurance market
  • Mortgage market

Why are financial markets so important?

Financial markets are incredibly essential to the economy because they offer these six functions:

  • Efficiency
  • Risk sharing
  • Price determination
  • Liquidity
  • Information about the flow of funds
  • Liquidity

These financial markets are what keep the gears moving with regard to the flow and movement of funds within global markets and the overall economic system. They have had a consistent role all throughout history, with the dawn of technology introducing even more ways for international markets to become intertwined. Thus, these connections are what helped financial markets grow into what they are now.

Best Financial Markets for Trading in 2020

If you are still unsure of which financial market you should be delving in, then let us help you out with this guide. We have compiled the best financial markets to trade in for 2020! All you have to do is read on and find out which fits best for you, your lifestyle, and the budget that you have.

1. Stock Market

The stock market is unarguably more prominent in certain countries, but it is certainly a pillar in the economy of most countries. The stock market is a type of financial market in which financing revolves around the buying, issuance, and selling of shares of stock.

If you are looking for long-term investments, then the stock market may be the perfect choice for you. The US stock market has grown incredibly over the past decade and is predicted to become even bigger this 2020.

Within the last 100 years, the US has achieved market dominance, consolidated their exchanges, and a secular sector rotation has occurred. This graph from Yahoo Finance shows the contrast between the world’s stock markets in 1899, and 2016.

stock market chart


Stock Market: Best for Medium to long investments.

2. Forex Market

The forex market has demonstrated an impressive growth from $5 billion in 1977 to over $5 trillion in 2017. Big numbers! This steady increase has been thanks to price volatility, advanced computers, more trading tools and access to information, and even the advancement of technology. Think about personal computers and how easy people now have access to these markets online. The barrier to entry is much smaller and the potential of becoming a forex trader is much more accessible. You can also join our Forex trading course to assist with your journey.

If you are seeking to trade in a market that is leaning towards short and medium-term trading times, then the forex market may be the one you are looking for. There are tons of classes, crash courses, and resources available online for you to kickstart your trading journey!

Forex Market: Best for shorter-term trading & new traders

3. Bond Market or the Real Estate Market

In terms of bond markets, these are where financing is derived through the issuance, buying, and selling of bonds. It is considered a capital market since it can also give financing for long-term investments, but it is not limited to just that! It is possible to buy or invest in bonds that have maturities of less than a year. These are usually considered to be sold in money markets.

On the other hand, the real estate market is one where financing is provided through the buy and sell acts of properties. Out of all the examples we have on this list, the real estate market is a prime example of a capital market since the properties are held for multiple years, and are illiquid.

Bond Market: Best for long term investments.

4. Derivatives Market

The derivatives market is a type of financial market for instruments such as underlying assets and financial derivatives. There are four types of participants in the derivatives market, namely: hedgers, margin traders, arbitrageurs, and speculators. There are also for main types of derivatives contracts, which are futures, forwards, swaps, and options.

Speculators take on the task of using instruments to hedge against risk or to take on that risk presented to make a potential profit.

Derivatives Market: More experienced traders.

5. Cryptocurrency Markets

This is one of the newest types of financial markets, but it has certainly made an impact on traders all over the world. Bitcoins and other forms of Altcoins even took center stage in many news outlets in the past decade, due to the strong surge of price volatility that caused a surge attracting many newbie traders. Bitcoin, in fact, gained 8.9 million percent over the last decade, a staggering increase making it the best investment of the last ten years.

The path that cryptocurrency markets will take is still quite uncertain, and it is all up to 2020 and the coming years to determine just how it can shape financial markets in general. We advise that you should do your research before getting into cryptocurrency, as it is an extremely young and volatile market and presents a high risk, high reward approach to trading.

Cryptocurrency Market: High volatility best for big returns but much riskier.

There are many types of financial markets around, and it is all about finding the one that will fit your preferences and your budget. However, there is one thing that cannot be denied among all of them: financial markets play a lead role in the success and strength of an economy,

Final tips for trading financial markets in 2020

Before jumping headfirst into investing in a certain financial market, be sure that you have a solid understanding of it and if it meets your criteria. While you cannot know for sure the next movements in the economy, it is important that you have an accurate view of the potential risks and rewards that are attached to every move you make. After all, it is your money that you’re putting forth, so it is best that you make wise and well-calculated decisions.

For a short period, we are offering a free review and consultation to those looking to start trading in the financial markets. There are limited spots so sign up here now.

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

THE PLATINUM WAY

At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.

If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.

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GOLD TECHNICAL ANALYSIS – GOLD TRADING TIPS FROM EXPERTS!

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Becoming a successful trader is already a pretty challenging feat to achieve, adding in the fact that you need to learn essential skills and become familiar with currencies that you’ve never traded before. A trader goes through rigorous training to enhance their discipline and experience and, if you make the right moves, becoming a trader is one of the most lucrative jobs out there.

One of the reasons why people flourish in this field is because they’ve got a knack for predicting how the trading tides will go. Experts utilise multiple types of fundamental, technical, and even sentiment factors in order to determine how one yellow metal will move in the market; Yes, the market also includes trading gold!

Considered as both currency and as a commodity, gold is widely regarded in the market in US dollars, and it is traded over the counter, as well as an exchange-traded instrument. The normal trader may not even think to consider trading gold, but it’s actually something that you should look into because of its many pros.

Trading Gold

Gold is actually considered as a safe-haven asset which increases its value whenever the markets are looking for an alternative to currencies that are losing their value. This is because as interest rates decline all over the world, there is a demand for a type of currency that will be able to keep its value relatively consistent.

Similar to dollar rates or Euribor rates, gold possesses a forward interest rate called the Gofo rate. The Gofo rate increases its rate relative to the US dollar whenever the demand for gold rises. The trick for expert traders is that they evaluate three dimensions that will give them a well-rounded perspective on the gold market.

Gold Technical Analysis

Veteran traders employ a tried-and-tested method of analysing the long term trend in the gold market by evaluating a weekly chart. This is because gold prices trade and trend sideways, very similar to other capital market instruments. Expert traders use a lot of tools in their arsenal in order to determine whether the price will trend, or remain relatively the same.

MACD or moving average convergence divergence is an extremely useful momentum index that takes advantage of a moving average in order to create a crossover signal. That crossover signal will then let you know whenever a positive or negative momentum is accelerating. Seasoned traders that use the weekly MACD crossover on gold prices to determine if the momentum is accelerating upward.

Relative strength index or RSI is also another momentum indicator that describes whether the gold prices are accelerating, in relation to the last 14-periods. The key to making the most out of this is to take a look at the previous highs and to gauge just how far the momentum was able to accelerate in the past.

LEARN TO TRADE GOLD AND MAKE PROFITS IN FEBRUARY 2020

Analysis of Gold Market Sentiment

While there are several figures you can utilise for Gold technical analysis and to guage the gold market sentiment, the leading method is by using the Commitment of Trader’s report released by the Commodity Futures Trading Commission. This report will give you the most accurate view of understanding market dynamics that will affect the gold market sentiment.

These reports will show position data that is detailed by category. The information found in these reports is given to the CFTC by clearing members and experienced brokers. While they are not obligated to report the reasons behind these, expert traders can easily make deductions about those positions.

In terms of gold futures and options, these categories include managed money, swap dealers, and any other reportable that are relevant. The swap dealers you will find include banks, along with industry-specific merchandisers. Whereas managed money contains pension funds, mutual funds, hedge funds, etc and the last of the reportable are usually retail trades.

What are the gold fundamentals?

It is indisputable that the most important gold fundamental is whether the US dollar will rise or fall. This dependency of gold on the US dollar is based on the fact that gold is priced in US dollars. Hence, when the dollar rises, gold becomes an even more expensive and attractive currency. This only means that gold prices must fall in order to accommodate the higher cost of buying it in US dollars.

On the other hand, when the dollar declines, the reverse is true. Traders are accustomed to following how the dollar performs compared to the Euro along with the yen, as these two consists most of the transactions that happen all around the world on a daily basis,

One of the most important things about gold is that it serves as a hedge against higher inflation as well. Whenever inflation is on the rise, the gold prices are able to offset increases.

In a nutshell, predicting gold prices has no cookie-cutter formula, thanks to its fluctuating nature. For gold technical analysis, You will need to utilise all available indicators in order to predict the future direction of gold prices. However, It’s not just all up to you to find the perfect combination of technicals to trade, learn more about our community and professional trading systems on a free consultation call.

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

THE PLATINUM WAY

At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.

If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.

Download our free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.

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WHAT IS DAY TRADING? DAY TRADING TIPS FOR NEWBIE FOREX TRADERS

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Are you a forex trader who loves starting and closing a trade within one day?

Does market analysis fascinate you And most times, you find yourself in an excellent position to monitor markets throughout the day?

This is your beginner’s guide to Day Trading.

What is Day Trading?

Simply put: Day Trading is buying and selling a security on the same day. Usually, the trader closes the day either at a profit or loss.

Meanwhile, successful day traders take advantage of short term trading strategies using high amounts to leverage. This strategy yields high profits once you capitalize on compact price movement in high liquidity markets. For those who don’t understand the ins and outs of long term trading strategies, day trading could be their best shot.

Key Points – Day Trading for Beginners

  • Traders employ several day trading strategies to profit off-price changes.
  • Most strategies take advantage of market inefficiencies.
  • Day trading features high technical analysis.
  • A good day trader needs objectivity, focus and self-discipline.

Forex Day Trading is not for you if:

  • You like executing short term and long term trades
  • You lack enough time to analyse markets during the day. (This loosely translates to not having a day job)
  • You lack clear objectivity

LEARN HOW TO MAKE PROFITS FROM DAY TRADING

Reasons to Start Day Trading

Easy to Learn

You do not have to invest in elite education to begin day trading. Studying the patterns of demand and supply is enough to get you going. You only consider the patterns for that particular day. A day’s mistakes will help rectify the next day’s strategy. Unlike short term and long term trading that take months to identify a mistake.

Low Capital Requirement

Unless for the “pattern day rule”, that expects US day traders to maintain a minimum balance of $25,000; Intraday traders have little capital requirements. You could trade with capital as low as $10. This amount, however, depends on your day trading strategy. Nonetheless, brokers offer high leverage considering that traders will close by the end of the day.

No Overnight Risks

You need not carry forward your risks into the next day or week. Therefore avoiding a big cause for sleepless nights.

How to Start Day Trading? What are the Requirements?

Day trading does not demand a lot from newbies. However, several elements are ideal to be a consistent day trading guru.

Ideal Capital

You could build a startup out of your day trading venture if armed with enough capital. $10 could be the minimum amount for day traders. However, I encourage the startup capital of at least $500. A sizable capital will ensure you set a favourable lot size.

Tools and Software

A trading platform for monitoring real-time quotes, news feeds, charting tools and premium research. However, note that a trading platform could be tailored towards a given market. Say futures, currencies, options or stocks.

Indicators

Since you are a beginning day trader, I presume your intraday technique is not well developed. Nevertheless, having a unique day trading indicator will give you an edge in the market. In fact, the best indicators will set the stage for higher profits. Here a few:

  • Velocity Finder – A next-generation indicator for comparing multiple time frames within milliseconds.
  • Moving Average Convergence/Divergence (MACD) – An indicator for comparing different trend lines based on simple moving averages. The MACD trading strategy reinforces a given trading
  • Pipbreaker – This is the perfect trading technique for beginning day traders. It combines approaches from scalping, long term and short term trading.

Reliable low Spread Broker

Most breakers tend to offer significant spreads. This spread could be the cause of huge spendings as you continue day trading. You must find a reliable day trading broker that provides lower spreads and premium tracking tools.

day trading

The Best Day Strategies for Beginners

You should remain informed on the latest market fundamentals to become a successful day trader. These fundamentals should inform the better part of your trading strategy. An effective strategy will rely on in-depth utilisation of charts and indicators, future price movements indicators and detailed technical analysis. All strategies offer significant profits. Yet their implementation and how best one suits will determine the road your day trading will take. Here are the best day trading strategies for beginners:

1. Trend Trading

Trend trading involves observing longer time frame charts to determine a general trend. Once you establish the dominant market performance, you compress your day trading frame chart for trading opportunities taking a similar pattern.

2. Counter Trading

Similar to Trend trading. Only that you identify the overall patterns and execute trades in the opposite direction. Day traders employing counter trading capitalize on trend reverses at the end of a tradeline. A reverse trade execution could have massive rewards but remains a lot risky.

3. Breakout

Breakout also called box breakout. This trading strategy involves observing the range a trading pair has made during given hours. The trader then marks these ranges inside a box and places a trade on either side of the box. Well, the basis of this idea is to catch wind of a breakout on either side of the trend. This intraday trading strategy is useful when the pair is within a tight range. A range upon which it is preparing for a big move in any direction. Usually, breakout day traders maximise on support and resistance levels. 

4. Sentimental Trading

Sentimental trading is highly effective in the long term for serious intraday traders. Here is the idea. Once a bull or bear run takes place in the market. A given sentiment prevails in that market for a given period of time. The sentiment of the market helps professional traders identify how the market is thinking. Such a strategy informs the direction a trade is likely to take. While most successful traders have market fundamentals at the back of their mind, market sentiment remains at the core of their heart. An essential disclaimer to sentimental day trading is that sentiment has a finite life span. No one can determine when it will end or change in a given direction.

LEARN HOW TO MAKE PROFITS FROM DAY TRADING

Bottom Line

To start day trading, pick a market that fascinates you and one that you can afford. Arm yourself with appropriate software and tools. Orient yourself with proper risk management practises, and believe me you are set for an exciting buck hunt in the world of day trading.

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

THE PLATINUM WAY

At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.

If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.

Download our free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.

Hopefully, you have enjoyed today’s article. Thanks for reading!

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