Which Are the Best Markets to Trade?

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Which Are the Best Markets to Trade? http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! One of the first questions that many people have when they are considering trading is which markets should I focus on? By this they usually mean which markets have the most opportunity for predictable profit.

With contracts for difference and spread betting, you can trade on practically anything but obviously some markets and some securities in those markets may turn out better. There are few main points which you should watch out for when selecting your trades.

Firstly, don’t be tempted to jump around from one to another anytime a particular trade doesn’t work out. There will be winners and losers in any market, and it’s more worthwhile to stick with one or two financial instruments and make sure you learn their activities properly before deciding you have to try another one. But trading will be better if you look for the following attributes: –

Liquidity – this means that the market can be traded freely, and you won’t be waiting to find a buyer when you want to sell, or having to sell at a lower price. It’s strongly associated with having a good volume of trading in the security.

It’s also a good idea to trade in something where you understand the product, perhaps even the manufacturer of something you use every day. You don’t want to become involved in a “hot stock” in a technology that you don’t appreciate, as you may just find that this unknown market is subject to unexpected moves for factors that you didn’t know about.

Finally, whatever you trade you will want to analyze with technical analysis, so you want a security that is well behaved and able to be analyzed. Trading on anything else is more akin to betting than trading.

That said, there are various classes of financial instruments that you will find best, at least to start. For instance, the major companies such as Tesco’s, Apple, Facebook, Vodafone, and others are readily available and have good liquidity, and you can relate to them and understand something of their business.

People also like to trade the general market indices, such as the FTSE or the Dow, and the movement of these is related to the general health of the economy in the particular country. For the USA you have several other choices other than the Dow, such as the NASDAQ, which is considered a more technical oriented index.

If you are attracted to the Forex market, for the start at least you’ll want to stick with the “majors”, such as the US dollar, the British pound, the euro, Japanese Yen and may be Canadian or Australian dollar. With Forex you’re always trading in pairs, and these are available in every combination such as GBP/USD or USD/JPY.

Finally you can consider the major commodities. These include metals such as gold and silver, and consumables such as crude oil, wheat, etc.

It will depend on your CFD broker what markets are available to you, but you will find most brokers give you access to all the major markets, and it is only if you want to pursue a less well traded financial security that you might need to seek a particular broker.

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  Forex Trading