Many traders keep trading using low-volume trading strategies while the charts are stable, but some decide to swap the market. In any case, you must be mindful of its potential implications and rebuild your trading system to navigate the market effectively. So what are the most popular instruments?
Forex is cyclical. As a rule, closer to the New Year and in the summer, activity in the foreign exchange market decreases. But this is not a reason to quit trading altogether. You can switch to more suitable instruments.
Cryptocurrency
The volatility in this market is constantly high, as the interest of traders to coins never drops. The governments of some countries, such as China and the United States, often change their budgetary policies in order to tighten or, on the contrary, weaken the rules for the use of cryptocurrencies. Such changes have a strong impact on the value of coins, which leads to high volatility, even when the foreign exchange market is dormant.
And we all know how Elon Musk influences the value of cryptocurrencies in the modern world. Thanks to his decisions and statements, the value of bitcoin jumps into thousands of dollars in a matter of hours.
Cryptocurrency trading can bring you significant profits. Give preference to the most popular of them:
- Bitcoin
- Ethereum
- Tether
- Litecoin, etc.
You can always find a list of the most popular currencies at the moment on the Internet. You will only have to keep track of the latest news in the field of cryptocurrencies, blockchain technologies and other related events, such as Elon Musk’s statements, and you can take your trading activity to the next level.
Gold and Oil
The demand for resources never falls. At the same time, their price fluctuates greatly, since there are a number of events and codependent indicators that have a significant impact on their value.
To successfully trade these commodities, you need to track events in the countries that are the largest suppliers or consumers of gold and oil:
- Due to the threat to the environment, many countries intend to abandon oil production in many promising fields. The decline in demand for raw materials affects the cost of a barrel.
- There is an inverse correlation between the value of the US dollar and oil. Many believe that it is the price of the commodity that drives the US currency. However, this works great both ways. Significant jumps in the dollar exchange rate will also move the oil price.
- Gold has always been very popular. After 2000, its value has steadily increased. However, the growing popularity of cryptocurrency forced many traders to back up their assets with coins which led to a decline in the popularity of the metal. However, gold has regained its former glory and has continued to rise since about 2016. Stability in this commodity market can ensure your long-term investment.
- The value of gold is directly related to the exchange rate and the level of metal exports from major supplying countries such as South Africa, China, Australia and the United States. Strong jumps in the value of these currencies can be reflected in the price of the metal. The correlation is direct. A change in the level of exports has the same effect. The fall in gold export from the mentioned countries has a detrimental effect on its value.
And Finally
If you are a long-term trader, then you can make money on Forex even in the summer - during times of low volatility and liquidity. Day traders may need to choose more suitable options. It all depends on your financial goals. Fortunately, the commodity and cryptocurrency markets are always at your fingertips. However, you should not rush there headlong. Choose one trading instrument, study it thoroughly, practice, and only then start trading with real funds. Good luck!