Predicting and Trading Online Markets

Predicting and trading online markets in currencies, stocks and commodities is the dream of every dedicated trader, as trading can be a highly rewarding job.

Predicting and Trading Online Markets during the Most Active Hours

Trading online markets as a full time task, or job, has been the goal of many traders. Most of them do focus on the active trading hours, in an effort to identify solid price trends. Predicting and trading online markets profitably, is all about gaining an edge. Some kind of advantage which will allow the trader to use market data to predict aspects of future price action. Forex exchange rates for example draw the focus of many currency analysts, who want to try trading. Those rates are difficult to predict, just like any market is. But their predictability varies with time, as they tend to become more predictable during active hours. Commodities on the other hand are also impacted by active trading hours. But on the whole, looking into their daily charts, they are easier to predict. Especially raw material and agricultural commodities. A currency pair may be impacted by the central bank of its country, on purpose, so as to slow down its undesirable trend. Commodities cannot be impacted this way. And except for the limited impact of the US dollar, commodity prices tend to be easier to figure out. Perhaps much more than stocks and certain currency pairs are. But traders have found ways to make millions in all kinds of markets. One trader’s difficult market is another trader’s easy game. So be sure not to take advice from veteran traders on this. Just because a veteran trader advises against trading a certain market, it doesn’t mean you shouldn’t. Because you might use a completely different approach, which deals with predictability and risk much better. Some day trader,s for example, only trade the e-mini SP500 index, thinking that the active hours in that market are easy to handle and trade, and they dislike currency trading as being too difficult. Other traders however, have found the exact opposite to be true. They believe that currencies are much better than the e-mini SP500 and stock indices in general. The reality is that stock indices tend to have boring trading days, where price hardly ever moves at all. Whereas with currencies, you have such a wide range of different markets. Not a day goes by where you won’t find a currency pair with momentum and active trading hours.

Trading Online Markets for Making Very Big Profits

Some traders are in the business of trading online markets for only few years. Believing they have dependable strategies and skills, they want to trade a lot for 5-7 years or less, and then retire. These traders are very few, but they do exist. They know what is CFD trading and how the FX exchange mechanism works, at a fundamental or sophisticated technical level. They also know that the US dollar can override both fundamentals and technicals, and obey geopolitical events or safe-haven investor activity. When this happens, the US dollar defies belief, and moves in any direction it wants. Often defying the analysis of top investment banks as well. Traders who are in for intense trading, and plan to retire soon, want to capture the best active trading hours or days. They still trade selectively. Rather than looking at high frequency trading and too many markets, they look at few cherry-picked trades. Then they trade these opportunities with large size trades.