The financial markets are currently in a much more stable situation than about a year ago, and yet the risk remains. For this reason, all assets today are risky to invest, as we cannot be sure that trends will continue over time. However, there are some that we could consider the best underlying assets to start trading, since they tend to be much more stable, have greater liquidity and have a much lower margin of loss.
Remember that brokers do not treat all assets equally, offering different levels of leverage for each one of them, and you be very careful in this regard. The higher leverage an asset has, the higher the potential profits as well as the potential losses, depending on how much you have invested and how much the price has moved against you.
Without further warnings to add, these are the best underlying assets to start trading in 2021:
Best financial assets to trade on 2021:
Forex
The largest market today is still Forex (Foreign Exchange), and one that many start with because its main virtue is that it is not so difficult to predict. The same happens for Binary Options; the prices of currency pairs, being assets backed by banks and governments, are usually very stable and respond strongly to economic calendars, changes in interest rates and capital injections.
Like everything else in the finance industry, the greatest modifier of Forex asset prices is also supply and demand, although market volumes must be very high to really generate significant changes in values, so you will surely find a very comfortable place to start trading in this market.
Stocks
Stock markets a little more complicated, but they can teach you a lot about finance and business worlds. If you decide to start with Stocks, you must take into account market analysis: following the fundamental news, reputation, launches, vision and CEOs of the companies you’d like to invest in.
With that information you will have an idea about how the market might respond to your investments. More experienced traders will also take into account market sentiment and do a lot of technical analysis to find out the trends, so starting here is for brave and enthusiastic newbies. Either way, you should practice your strategies first with a demo account.
Raw materials and oil
Trading with raw materials and oil is much easier than Forex or Stocks. Beyond the fact that you can configure automatic trading based on signals, the truth is that the low leverage that these instruments usually have can become attractive for beginners. They are less risky and their movements are generally not as violent.
The clear exception is oil, a raw material much more sensitive to changes in the market and which has been pressured by the great powers in their struggle for power. In the year 2020 an unprecedented event in history occurred, which was the negative price of oil. This phenomenon took many by surprise, but, due to the present circumstances, some Oil traders began to anticipate it before it happened and withdrew their investments in futures.
Cryptocurrencies
If there is a market that has been breaking records since last year, it is that of Cryptocurrencies, with the meteoric rise of Bitcoin, Ethereum and other crypto assets that have been gaining value with an almost non-stop pace. Despite the fact that their value continues to fluctuate violently, for many cryptocurrencies are not just a passing fad, but a legitimate way to store value that will grow over the years.
Enthusiasts will be even accentuated to claim that Cryptos are the future of the internet economy, but there is still a long way to go for that. For now, as speculative assets and for short- and medium-term investments, they fulfill a rather promising role.
Binary options
Last but not least, binary options are a form of investment that has gained many followers in recent years, due in particular to how simple they are: basically, you just have to predict whether an asset in question will go up or down, and then wait 2 or 3 minutes for the result of the trade to be favorable or unfavorable.
Thanks to this facility you can get to make money quickly with a much lower investment than with other assets. Also, you can use software like MT2Trading to automate your trading and make money while enjoying your life without worrying too much about calculating trends and analyzing data on tedious charts.
Conclusion
The financial world went through significant, unprecedented movements since the Covid-19 pandemic that took everyone by surprise last year. Even though markets are slowly becoming more stable, strong volatilities are still present and everyone with intention to start trading should be aware of it.
Before starting to trade any financial asset, either through our automatic trading robot or through manual operations, you must make sure that you fully understand what you are dealing with: complex and risky operations that, depending on the decision you make, could you lose or win a lot of money. Practice is strongly recommended, which can be with a Demo account.
MT2Trading allows you to significantly reduce this risk by providing you a platform from which you can receive trading signals from different sources. Based on these signals, you’ll be able to trade automatically or manually, achieving better results and covering a greater variety of assets.