Simple investors try to make money trading online usually in one of three ways. The most hyped method is forex (or foreign currency) but in reality that is a losing proposition more than a winning one for average traders. Then there is the shiny golden metal that is supposed to be an inflation hedge or doomsday currency of last resort but investors will find (as they always do) that when the turmoil dies... so does the demand for gold. While zealots would have you believe gold is the ultimate inflation hedge what they forget is that the shiny metal has the most powerful enemies in the world - the world's central banks. Think you can beat them? The other recent really popular movement has been a phenomena called swing trades.
People Make Money Trading Many Ways - What Way Will Work for You?
While I believe all forms of investment are worth examining it is important for individuals to identify which method or methods might work best and focus on one market or style. Consider the above mentioned three investment styles: forex, gold, and swing. How might an investor decide which style will allow them the best chance to make money trading online?
Is Forex Your Cup of Tea?
An investor thinking that forex might be their forte would have to be familiar with long time forex cross rate relationships, macroeconomic principals, and be able to handle the pressure associated with highly leveraged margin positions
Do You Have a Finger for Gold?
In the case of a gold trader the skills required to be successful might include a strong knowledge of seasonal supply and demand trends. It would also likely require paying close attention to the principal mining companies. Lastly it would require a good understanding of specific macroeconomic factors such as interest rates, inflation, and the core US dollar cross rates (EUR and GBP for example).
Can You Read the Pulse of the Market?
Someone wanting to make money trading online using a swing trade method would have to specialize in momentum trades. This type of investor focuses on highly liquid securities and worries much less about the macroeconomic and financial fundamentals and instead concentrates on the microeconomic forces moving a single specific security.
Are Binary Options a Better Way Ahead?
Binary options are lesser known low cost, fast paced, high return increasingly popular way to participate in the stock market. Trades expire hourly and have a simple up or down payout structure making them simpler to understand than other types of high yield/high risk investments.
No comments:
Post a Comment