finance        20 января 2020        339         0

Which market or exchange to trade for a beginner

Before newcomers who come to the market with the aim of trading or investing, the question arises – where to trade. Because there are binary options, Forex, cryptocurrency, stock market and it is not clear what to choose. Therefore, I will briefly talk about each type of trade.

1. Binary options.

My opinion is binary options – this is a pure casino. You can’t earn on binary options, it’s like a casino, and you don’t need it. Even if you correctly predict the price movement, it may go back for a moment, your transaction will close at a loss and then the price will go where you planned. But your transaction will automatically close at a specific time.


2. Forex market.

With the Forex market, things are more interesting. On Forex you can trade and earn money. But with forex, it’s important to understand one thing. Nobody brings you to the real Forex market. The Forex market is an interbank market in which banks exchange currency with each other to replenish their reserve reserves. And, accordingly, to enter Forex, you need to be a bank. Those companies (Forex brokers) whose advertising you see are essentially trading within their organization. Simply put, when you open an account and start trading, then you trade either directly with the broker or with his clients, that is, you are not brought to any market. This is important to understand, because it opens up a certain scope for manipulation. And if you trade against a broker, accordingly, he is interested in you losing. He can deliver quotes with delay or draw “interesting” candles on the chart. Therefore, this is important to consider. Hence they say that Forex is a “kitchen”. But there are large Forex brokers who do not sin much by this.

But it is also important to understand that you trade in currency pairs on Forex, and the foreign exchange market, let’s say this is not a trend market, that is, there are trends, but not very often. The Forex market is mostly sideways and this imposes certain restrictions on trading. For this reason, big shoulders are available in the Forex market, up to 1/500, because there are not very large movements.


3. Cryptocurrency market.

The cryptocurrency market is still quite new and not formed, but I believe that you can trade. Although it’s quite difficult so far. Trading on it is no different from trading on any other market. Cryptocurrencies move just like any other asset, such as the euro / dollar. The same technical analysis, the same fundamental analysis, the same forecasting rules. But the charm lies in the fact that, firstly, cryptocurrency is very volatile, and secondly, it is a trend and forms a trend market. Accordingly, this opens up great potential for profit. Shoulder brokers provide up to 1/100. If you wish, you can make huge interest. Yes, there are risks. Accordingly, big profits are big risks. But at least there is such an opportunity.


4. The stock market.

The stock market is the foundation. This is actually the main thing you should look at. Especially if you are considering not only speculation, and want to engage in investment, then this is only the stock market. Because in the stock market, firstly, maximum transparency, secondly, if you bought an asset, you become its actual owner and, thirdly, reliability and protection from any fraud on the part of brokers.

Next, let’s talk about how to trade.

In fact, you will have a choice of three instruments: options, futures and stocks.

Options. If you are a beginner, then we will not recommend trading them. A very complex tool, big risks and you do not need it.
You still have futures and stocks.

We recommend starting first with stocks. Futures is a stock derivative. Accordingly, it is noisier, technical analysis will work worse for it, prognostic characteristics are worse. While you are just starting to trade, then look for simpler options. The simplest option is liquid stocks, for example, Sberbank, Gazprom, Lukoil, etc. The downside of futures also lies in the fact that liquid futures, according to which it is really possible to carry out active trading, can be counted on the fingers of one hand, for example, Sberbank, gold, oil and a couple of other instruments.

Your task, especially when you are just starting out, is to learn how to work out the technique, your understanding of the market, and get your hand filled. And best for this are promotions. Stocks are what you need. There are fewer risks on stocks, Stocks are as technical as possible, i.e. technical analysis works best for them. A very large selection. If something is not clear on one share, then we looked at the second, third, fourth until you find the share that you most understand.
            Therefore, if you have just entered the market, we recommend starting with the stock market and the stock market. And only then, as your experience develops, can you connect futures, options, cryptocurrencies, etc.

Next, let’s talk how much to start.

When you first start trading with a minimum amount. The minimum amount in the stock market is 30,000 rubles. If the amount is less than 30,000, then you will not register the keys on the exchange and you will not be able to use the terminal. Accordingly, in order for you to register the keys and you become a full-fledged market participant, you need 30,000 rubles. It is with this amount that we think it makes sense to start. Because while you study, you will definitely be mistaken. When you first entered the market, you should not have a task to make money, you have a task, first of all, to learn, i.e. “Fill” the hand, and there is no point in learning from large amounts. Because one way or another in the beginning, you will still lose money. But it is one thing to lose 20% of 30,000, and another thing 20% ​​of 1,000,000. You will get the same experience, but give the money in the first and in the second case, a disparate amount. And it makes no sense.

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