Exploring the different trading opportunities

Trading assets on the financial markets can be an effective way to supplement your funds – if you’re prepared to manage the risks of putting money into something with an unstable value. Explore the different trading opportunities available and how to build your own online portfolio.

Main tradable assets

1. Stocks

One of the most common avenues, especially for seasoned investors turning towards active trading, is stocks. This involves purchasing shares in companies offering tradable stock and re-selling these shares when they have risen in value.

You can buy individual shares in independent companies or take out exchange-traded funds (ETFs) that trade on the stock exchange, tracking various indices. Monitoring your stocks is easy thanks to online market data trackers from trusted sources which give real-time insight into trends to help you inform your purchasing and selling decisions.

• Forex

Another popular way to trade is on the Foreign Exchange (Forex) Market, buying and selling currency to take advantage of the shifting exchange rates between different currency pairs.

The Foreign Exchange is the most liquid financial market in the world, and this fast-paced nature makes it less volatile than most markets. However, currency value can change at a rapid rate – often due to unpredictable world events. With this in mind, it’s best to start trading major currency pairs that tend to be more stable before exploring exotic options.

• Commodities

Commodities such as precious metals, oil and agricultural produce such as sugar and coffee can also be traded. Goods with a universally recognised value are available to buy and sell or exchange which makes this type of trading relatively stable. The profit potential comes from the constant flow of supply and demand.

• Bonds

Seeking an asset that’s stable in the short term? If you have sufficient capital, bonds are the answer! This is a loan given to a company as an investment with the agreement that all of the money will be returned at a set time, with regular fixed-rate interest payments made at regular intervals until that date.

The downside of this stable trading opportunity is that returns are slow, and there is always the danger that companies can default on paying back their bonds.

Which trading opportunities are right for me?

Finding the right trading opportunities for you depends on several factors: how much money you have to trade with, your risk adversity and how quickly you would prefer to get returns on your investments. Ensure you go for a diverse range of assets, even if these are largely one type of opportunity, to protect yourself against suffering significant losses.

You can use online platforms from companies like Tradu to unite your assets in one place, making them much easier to manage. These platforms give you an overview of the markets with live updates, helping you identify the best times to buy, sell or exchange. You can also set up safety measures to protect your investments such as automatic take-profit and stop-loss orders.

Ultimately, with a varied portfolio, consistent and careful management and maintained awareness of global economic trends which could influence the value of your assets, you could find success in trading.