Are you wondering which asset you should choose to earn? Read this article!
Beginners usually try to trade as much of an asset as they have. As a result, they incur losses rather than earn. What assets are the most optimal for beginners? Any newbie who signs up for an account asks what is the best asset to trade. This question no longer surprises anyone, since brokers offer a huge number of assets for trading. Often assets are commodities (oil, gold, silver, platinum), securities of leading companies and, of course, currencies. In this article, I will try to answer the question of what assets a beginner should focus on. In order to do this, we need to take a brief look at each sector.
Goods
Commodities are a highly volatile sector that is used by thousands of traders and funds. If you compare commodities with currency pairs, you will see that it is better for a beginner to start with these assets, especially gold. Gold is perfectly correlated with the US and Australian dollars. When the value of the world’s major currencies falls, gold rises in value. As you can see in the screenshot, the price of gold fell on Black Monday due to the performance in China. So you see that the value of the US dollar is falling and the value of GOLD is rising. Thus, this asset should be in the trader’s portfolio.
Securities
This sector is called the engine of the economy. As a rule, binary options brokers offer a huge variety of securities of many well-known companies. As a rule, the offered securities belong to such world leaders as Apple, City Group, Gazprom, and Coca-Cola. In my opinion, the assets of this sector should also be included in the portfolio of every trader, as they are traded by professionals.
Professionals, on the other hand, love technical and fundamental analysis. On top of that, there is no need to trade securities every day. You can find the latest news on cash securities and set up a reminder that you will only trade on the day the news is published. News, as a rule, causes the value of securities to move in the right direction.
As an example, this chart shows the change in the value of Applestocks securities, the value fell to $92.04 on Black Monday, but immediately regained its position, rising to $103.15 after the CEO commented that Apple is successfully developing cooperation with China. Definitely, securities should be included in the portfolio of novice traders. However, you should choose those securities about which you can find information. If you live in Russia and want to trade Alibaba securities, you should refrain from this. Then, for example, it is better for you to trade the valuable booms of Gazprom.
Currency pairs
From morning to night, the whole world continuously hears news about exchange rates, as well as news about politics, economics, etc. Everything in this world has to do with money. The currency is attractive because of its availability and huge selection. I will allow myself to give you some recommendations as to which currency pairs are better to control and at what time.
- GBP/USD: British pound sterling – US dollar. It is best to trade on this currency pair from 8 am to 10 pm, London time. However, the best time to trade on the British pound sterling – US dollar pair is from one o’clock in the afternoon to five in the evening, when the American and London sessions overlap.
- USD/JPY: U.S. dollar – Japanese yen. This currency pair is fashionable. Often it shows a certain well-formed direction of value movement. It is volatile almost around the clock. You can trade this currency pair from midnight to 9 am, and from one o’clock in the afternoon to ten in the evening London time.
- USD/CAD: U.S. Dollar – Canadian Dollar. This is an excellent technical pair. It is recommended to trade from one o’clock in the afternoon to ten in the evening, London time.
- USD/CHF: U.S. dollar – Swiss franc. Traders should pay special attention to this currency pair due to the fact that it shows a clear trend direction. For beginners, perhaps enough. Next, you should only keep an eye on these assets in order to develop the ideas necessary for your trading and trade successfully.
To conclude…
Due to the huge number of assets, you should be extremely careful when choosing them. Do not joke with Lady Luck. Define a list of assets, start developing and trading them, study them as deeply as possible, and only then gradually add new assets to the list.
Tagged with: Binary Options Academy • Learning how to trade binary
