Formulating a trading strategy can be a daunting task but experienced traders started by simply studying up on the causes of price fluctuations through analyzing the trends over a specific period of time and looking out for news releases.
Currency pairs are usually categorized as either major or minor according to their liquidity where major currencies boast higher liquidity and are more popular whilst minor pairs are less liquid and have wider spreads.
The leverage allows you to maximize your amount of account or purchasing ability, which makes you control big trades with small margin or collateral and helps you to maximize your profits also, but also is a double-edged sword that can increase your loss amount by the same.
Due to the forex market is so enormous, it is also extremely liquid. This is an advantage because it means that under normal market conditions, with a click of a mouse, you can instantaneously buy and sell at will
Price can shift dramatically for a lot of reasons but the most common factor usually comes in the form of news releases such as economic data releases or shifts in
government financial policies in determining the value of a currency and in the face of inflation and interest rate
Even though the forex market is open at all times except for the weekend, there are specific time frames where some currency pairs will see the most activity whilst others will see the least activity. Those time frames are called trading sessions and come in the form of either Sydney, Tokyo , London ,New York trading sessions.
Due to the immense supply and demand of energy commodities and the fact that most of the companies with the world’s highest market capitalization are in the energy sector, trading energy stocks and commodities usually is a safe and lucrative investment.
There is a variety of energy commodities to invest in that range from fossil fuels all the way to renewable energy, but the most popular commodity amongst traders is crude oil.
As the world concentrates its efforts to reduce the use of fossil fuels as the global warming crisis is becoming more of a reality every day, traders from all over the world are investing more and more in renewable energy as the industry grows exponentially every year.
The answer is based on how you trade stocks and products of energy, because trading stocks and products of energy come in two forms. First, you can trade it in the basic way called buy and hold, which makes you profit when the stock value increases. The second way, you can trade it as CFD, which makes you profit without owning it and achieving your profits. With two trends up and down, that means you can make a profit in the downtrend and crisis.
Energy trading comes in the form of the buying and selling of either stocks from energy companies or energy commodities.
Indices can be simply defined as tools that measure and quantify the performance of a specific sector of the market through including securities that belong to said sectors and represent their current state through the largest companies and business sectors in the same country
Since that there are countless indexes out there where each serves a specific purpose, the most popular of all indexes are usually either are the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.
Since indices are tools that measure the performance of specific sectors of the market, they can’t be traded, but what traders refer to as index trading usually comes in the form of the buying and selling of securities that are linked to an actual index.
Trading stocks comes in the form of the buying and selling of actual stocks where you pay full price of the security and effectively own it, on the other hand, stock CFDs is a contract enable you to trade on rising or falling prices without taking ownership of the underlying asset and can be used to trade a range of markets such as forex, shares, indices, commodities, and crypto. If the price of an asset goes up by 5%, your CFD does the same. If, on the other hand, the price goes down by 5%, your CFD also loses 5% in value
Trading crypto comes in the form of the buying and selling crypto currencies such as bitcoin with basic way called buy and hold and owning it, on the other hand, trading crypto CFDs takes the form of predicting the direction of the price shifts of crypto currency pairs without owning it