The Tale of a Sage: A Journey To Trading Wisdom
A quick and easy to follow guide on getting started in the trading world.
*Sage FX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
- Where do I start?
- An overview of each market
- Which market is the best for me?
The road that leads you to become a successful trader is different for everyone. For some, word of mouth may be their first foray in the exciting world of trading. For others, coming across a trading article might end up transforming their lives and help them reap the rewards of the industry.
Where Do I Start?
All of us traders have asked ourselves, at some point, which trading niche we should dedicate our precious time and effort to.
It all boils down to your answer to these two questions:
- How much time can you dedicate to trading daily?
- Which market suits you and your personality?
Once you have answered these two fundamental questions you can then start learning about different markets and which ones suit you and your trading goals.
The Different Markets
This is the largest market in the world. Forex or FX are abbreviations for the term foreign exchange. As you might know, foreign exchange occurs when you change one currency to another. It is an activity that is done in pairs with many combinations possible. However, only a few are high-liquidity pairings which are known as FX Majors.
The forex market is teeming with high liquidity, volatility, and leverage. It offers a variety of financial opportunities to the right trader, however, it is not for everyone.
Trade on the forex market if you:
- Can dedicate a lot of time to trading
- Are not risk-averse and like the thrill of the uncertain
- Have the patience to draw up a trading plan and you can stick to it
The crypto market is the new kids on the block, with the most well-known coin being created in 2009. However, its significant volatility creates a world of opportunities for traders who want to learn about the workings of this new market. It also offers flexibility – you can choose to go long or short which is not an option that all markets offer.
Trade on the crypto market if:
- You are short on time. The crypto market is open 24/7 which offers full flexibility to the part-time trader.
- Dislike bureaucratic procedures and want to cut the middleman. There are no financial intermediaries that take commissions and increase costs for customers in the crypto market. It gives you full access to your funds anytime, anywhere, and quick exchanges due to its automated framework.
- Your journey is just beginning and you want to explore new liquidity opportunities. The cryptocurrency market offers lower fees to worldwide audiences, allowing you to test out this market with fewer risks, better pricing, and faster transaction times.
Indices and Commodities Trading:
Indices trading is the speculation on the price movements of stock indices. These (indices) are groups of individual shares that are classified by independent institutions (such as specialist companies or major banks). Commodities trading, on the other hand, is the exchange of commodities on the market (including gold, oil, metals, etc).
You should trade indices or commodities if you:
- Want to expose yourself to stocks of greater value and love the thrill of the market. Given that you need to put in a part of the total amount (typically 10% of the contract value) when trading indices or commodities, you typically need to invest more capital when trading on this market. However, your profits may multiply and you can make considerable gains if the market moves favorably.
- Like the flexibility of selling fast. Whilst the risk factor is higher, you can also legally short sell indices and commodities faster than in other markets.
Trade like a Sage
From novice to sage; your trading is bound to be full of insightful twists and turns. Sage FX conveniently offers access to all these markets and full flexibility to all its registered traders to embark on fulfilling trading journeys.
Have you signed up yet?