When starting to trade there is one question that we have to inevitably answer to ourselves – what do we choose to trade? Currencies, commodities or stocks? Well, let’s look into all of these so that you can answer to yourself.
1. Currencies.
Currencies’ market is the most liquid and it is open 24/7. It is better for the beginners to go to currencies market as it is the easiest when it comes to learning. A lot of broker offer demo accounts where you can get used to trading without losing any of your assets. That is pretty neat, right?
But this segment of the market can be pretty overwhelming. There are simply too many choices in currency couples. There are hundreds of possibilities to win and to lose. There are thousands of different ways and strategies that you simply must choose or yourself. But that is what you have the support team of the broker and trading signals’ for – to help you out in the very beginning.
2. Commodities.
A little but more for pros, so I would say. Although there is one clear advantage in this segment of the market – predictability. Connections between commodities and currencies have been long established. And you need to understand these connections in order to make profit.
You also need to follow politics and economic climate all around the world in order to really understand the price formation process and the reasoning behind falls and surges. You are going to be looking at a whole lot of information and that is going to overload your head, for sure. Why am I so sure? Been there myself! But do not worry. As soon as you get the grasp of what is happening you are going to see results.
3. Stocks.
Stocks are not nearly as liquid as currencies and do not really have strong connections with the currencies like commodities, but I would argue that stock are the most interesting assets to trade, although here it is an extremely subjective opinion. One needs to be very informed of the policies of the companies and the overall situation at the market in order to make a right decision for the buy/sell strategies,
But what of the perks? Well, obviously wide choice, dealing with popular names and being informed about innovative decisions in the field. Isn’t it nice? I think it is.
In choosing assets and market to trade one needs to consider a lot of things. Liquidity, popularity, policies and a bunch of other things which are going to be main factors on your further winnings and profitability.