Since 2015, we have helped 1000’s of clients become independent traders and achieve their financial goals.We are good at what we do and we get results.We can provide meaningful advice and We provide practical, down-to-earth solutions that recognizes most clients.By trading the financial markets you have access to incredible growth.This advice, though pertinent, seems to be easier said than done when it comes to trading.

So which markets should you trade?

As technology increases and trading innovation continues, the world is seeing an expansion in the types of trading instruments that can be used. Even seemingly separate markets are attempting to steal each other’s market share.

For example, a person no longer needs to buy silver physically or even from a futures contract, they can simply buy an exchange-traded fund (ETF) to participate in the movement of silver prices. Considering that similar scenarios are possible with currencies, commodities, stocks, and other investments, traders can fine-tune how they trade and tailor it more to their individual circumstances.

The style of trading, financial resources, location, and the time of day a person trades (or wants to trade), can all play a role in which markets will be best suited to the individual. Since some of these markets may not be familiar we will look at two common trader groups and how they could implement the use of other markets to improve their trading. It is important to be aware of such alternatives, as they may provide for some fine-tuning which can result in better results over the long run.

Types of Markets

There are various types of markets which we will go into detail below but we help you decide what type of trader you want to be and which markets suits your needs.

Various types of Markets

• Stock Market: This well-known market simply involves buying/shorting shares of a company.
• ETF Market: Funds representing all sorts of sectors, industries, currencies, and commodities. Trading similar to stocks, these funds can be bought and sold rapidly or held long term.
• Forex Market: The forex market facilitates the exchange of one currency for another currency. Currencies are always traded in pairs, with many potential combinations available, but only some of which are very liquid.
• Options Market: A market that allows participants to undertake positions in the derivative of an asset. Therefore, the option is not ownership of an underlying asset (though rights and obligations exist), but the option price (along with other inputs) fluctuates with the value (or lack of) that the underlying asset is providing.
• Contract for Difference (CFD): A hybrid of the stock, forex, and options market that allows participants to place trades in a derivative product based on an underlying asset. Generally, the CFD does not have an expiry date, premium, or commission (see broker’s terms and conditions), but does require the participant to generally pay a larger bid/ask spread than what would be seen in the actual physical market for a product.

For Day Traders

The main lure of trading in the foreign exchange markets is that minimal investment is required. Accounts can often be opened for as little as $100 and will allow individuals to day trade global currencies, indexes, and commodities. With the forex market, the trader is actually exchanging one currency for another, possibly in an account denominated in yet another currency.

For Long-Term Investors

Commodities often attract long-term investors, yet they may be unfamiliar with futures markets and so they have not participated directly in the movements of commodities such as gold, silver, or platinum. Also, it is unlikely they have different currency exposure. And while they may have considered options trading, the time-framed nature of the instrument does not appeal to their trading plan.

In the end it comes down to what type of trader you want to be and what strategy you prefer to tackle the markets with.For more on strategies please see our services section for more information.