Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Traders: Which Markets Should You Trade?

Stock-Markets / Financial Markets 2019 Aug 11, 2019 - 02:10 PM GMT

By: Submissions

Stock-Markets As technology advances and trading innovation continues, many traders want to diversify their investments. The prospect of making more profits have led many into trading markets they never thought possible. Although traders are continually seeking better markets and improved opportunities to explore, not many are in the know of the types of trading instruments available in this digital age. Surprisingly, traders are not the only ones looking to improve their chances of earning more. Even seemingly different markets are now attempting to steal each other's market share. For instance, traders no longer need to buy physical gold or even from a futures contract to participate in the movement of gold prices; instead, they can now buy an exchange traded fund (ETF). With that being said, similar scenarios are now possible with stock, currencies, commodities, and other investments. Hence, traders generally have a wealth of diversified opportunities they can leverage to their individual circumstances.


Depending on the level of education and experience, traders may or may not be totally aware of the investments or trading tools that are accessible with a click of the mouse. Even while attempting to avoid illiquid and abstract markets, traders can still find trades within many different markets.

Stock Market: You've probably heard some folks talk about buying or trading stocks. Well, there is nothing abstract about this market. The stock market simply involves shorting/buying shares of a company.

ETF Market: Funds representing all sorts of currencies, sectors, industries, and commodities. ETF trading is quite similar to stocks, and it can be bought and sold rapidly or held long term.

Forex Market: This well-known market is the largest trading market in the world. The forex market facilitates currency exchanges. In this market, currencies are always traded in pairs, with many possible combinations, but only some of which are very liquid. Traders are often compelled to work with regulated trading brokers in this industry.

Options Market: An options market is a market that allows traders to participate in the derivative of an asset. In this market, the option is not ownership of an underlying asset, but the option price fluctuates with the value that the underlying asset is offering.

Contract for Difference (CFD): CFD is a hybrid of the options, forex, and stocks market. This market allows traders to place trades in a derivative product based on an underlying asset. Generally, this market doesn't require traders to pay a commission or a premium, and it usually doesn't have an expiry date. But, it requires that traders pay a larger bid/ask spread than what they would see in a real-time market for a product.

Thanks to technology, these markets, and many others are now easily accessible to anyone from the comfort of their home. All you need is an internet connection!

Which markets should you trade?

I have come across many ambitious individuals and aspiring traders, and the one question peculiar to them all is: which of the trading markets is right for me? While that may seem like a rather daunting question for an aspiring trader, it is actually not so difficult to answer. The financial resources at your disposal, time of day you'd love to trade, the trading style you employ, and location, can all play a significant role in determining which markets will be best suited to the individual.

Financial resources: The stock market is generally an expensive market to trade, as traders are compelled to maintain an equity balance of $25,000 in their account at all times. A friendlier market in terms of starting capital is the forex market. Traders in the forex market can get started with as little as $100 with some brokers, although the recommended starting capital is at least $500-$1000, so as to ensure you stay in line with forex regulation. If you are financially buoyant, you can also try the futures market. You can start trading futures with about %3500 - $5000.

Time of trade

The futures market and stock market are excellent day trading markets. If you are cool with day trading and you have the financial muscle to get started, these are the markets for you. The forex market is another fantastic market for day traders.

By and large, if you don't have at least $25,000, you can't day trade stocks unless you save up more capital. However, if you have ample capital, then forex, stocks, or futures are all great day trading markets.

By Uday Tank

© 2019 Copyright Uday Tank - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in