Do you want to know what asset to choose to gain a profit? Read this article.
Newbies usually try to trade as many assets as they can.As a result, they have losses instead of profits. Find out which assets are optimal for beginners.
Any newbie opening an account asks which asset is better to trade.This question is not surprising because the broker offers an extensive range of sufficient assets to trade. Often, assets are commodities (oil, gold, silver, platinum), stocks of leading companies, and of course, currencies.
In this article, I will try to answer the question of which asset to choose. To do this, I will briefly review each of the sectors.
Commodities
Commodities are a very volatile sector used by thousands of traders and funds. If you compare commodities with currency pairs, it is better for the beginner to start with these assets, especially gold. Gold is perfectly correlated with the US and Australian dollars. When the main world currencies decline, gold rises in price.
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As we see in the screenshot, the price of gold dropped on Black Monday due to Chinese data. Also, you can see that when the US dollar declines, GOLD rises.
Therefore, the asset must be in the trader’s portfolio.
Stocks
This sector is the engine of the economy.
As usual binary options brokers offer a multitude of stocks from the well-known companies. As a rule, the stocks offered are from the world's leading companies, such as Apple, City Group, Gazprom, and Coca-Cola.
In my view, the assets of this sector also should be included in the trader’s portfolio because they are traded by professionals. The professionals like technical and fundamental analysis. In addition, there is no necessity to trade stocks every day. You can find the latest information on the available stock and set a reminder to trade only on the day of the publication of news. News greatly moves stocks in the right direction.
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An example is the chart of Applestocks, which declined to $92.04 on Black Monday but recovered immediately to $103.15 after the CEO commented that Apple is working successfully in China.
Definitely, stocks should be included in the novice trader’s binary options portfolio. However, choose stocks on which you can find information. If you live in Russia and want to trade Alibaba stocks, do not do it. It’s better for you to trade Gazprom stocks.
Currencies
The whole world, from morning to night, hears the news about exchange rates and reads news of politics, economics, etc. Everything is connected with money in this world.
Currency is attractive because of its availability and wide choice.
Let me give you some recommendations on which currency pairs to keep under control and at what time.
1. GBP/USD: The British pound against the US dollar. It is better to trade this currency pair from 08:00 to 22:00, London time. However, the best time to trade the GBP/USD pair is from 13:00 to 17:00, when the American and London sessions overlap.
2. USD/JPY: The US dollar against the Japanese yen. It is the trending currency pair. It often gives good directional movement. It is volatile almost around the clock. You can trade this pair from 00:00 to 09:00 and from 13:00 to 22:00, London time.
3. USD/CAD: The US dollar against the Canadian dollar. It’s a great technical pair. It’s recommended to trade from 13:00 to 22:00, London time.
4. USD/CHF: The US dollar against the Swiss franc. Traders should pay special attention to this pair because it gives a good trend.
For a beginner, this list is enough. Next, you need to follow these assets to create trading ideas and trade well.
In conclusion…
Because of the vast number of assets, you should be careful. You should not play with good fortune. Determine your list of assets and begin to develop and trade them, study them, and then gradually add new assets to your portfolio.