If you’ve followed world financial news lately, you already know that there are numerous opportunities for sharp-eyed traders. Knowledge is power, especially during turbulent times when the markets are reacting to major events like the Russia-Ukraine war, the continuing COVID pandemic, rising energy costs across the globe, and rampant inflation in many developed economies. Changes and crises can mean opportunities for those prepared to move quickly, work with a reliable broker, use the right software tools, employ smart trading techniques, and research the marketplace before placing their hard-earned money at risk. Here’s an overview of what you should know in order to benefit from the current state of the international economy.
Opportunities in Today’s Stock Market
No matter what broker or trading platform you currently use, it’s worthwhile to learn about meta trader 5, because the platform offers traders the chance to enter transactions in stocks, options, forex, futures, CFDs (contracts for difference), and other asset classes. Plus, anyone can take advantage of modern changes in technology and other recent trends. They include copy trading, which gives newcomers the chance to follow an expert and mirror their purchases and sales exactly.
The recent war in Eastern Europe between Ukraine and Russia has sent energy markets upward. Investors who follow that sector tend to watch the prices of natural gas and petroleum and make predictions about where the top will be and when a correction will take place. The war has also had a heavy impact on the supply and demand of multiple commodities, like nickel and gold. If hostilities die down soon, there could be opportunities for commodities traders to profit from rapid changes in supply in dozens of natural resources whose markets have been severely disrupted by the war.
COVID and Inflation
The COVID pandemic and ongoing inflationary pressures are two other factors that have opened profitable doors for many corporations and investors. Many of the top healthcare stocks have reached record prices as the global demand for vaccines and health-related equipment surges. Currency traders who are active in the forex markets have been keeping a close eye on recent inflation data. Whenever one nation experiences a relatively higher inflation rate than another, there’s a tendency for the higher inflation nation’s currency to perform poorly. Forex success is based on just this type of prediction, which gives special importance to financial news pertaining to inflation rates in various countries.
Amid supply chain problems, inflation, war, and a health pandemic, some companies have surged in value. Occidental Petroleum has enjoyed a 95 percent price rise since the beginning of the year, meaning investors have nearly doubled their investments. No doubt, much of that rise is due to the scarcity of oil during the Ukraine-Russia war as well as other factors. Other major winners for 2022 include The Mosaic Company, an agriculture company that develops crop nutrients. Its value has risen a whopping 70 percent since January 1. Likewise, Marathon Oil and Halliburton Corp. have both risen by more than 50 percent during the first quarter of 2022, demonstrating that a turbulent world economy is not detrimental to all companies. Actually, depending on the market sector and what the corporation does, a volatile economy can be a positive factor for shareholders.
Choosing a Broker
Spend time choosing a broker that offers the features, software, platforms, and customer service you need, https://www.avatrade.co.za could be the one for you. Whatever your preferred niche, take the time to research companies in depth before investing in them. Find a software product that is user-friendly and lets you trade the assets you are interested in. Avoid opting for overly complex software.
Popular Strategies and Tactics for Earning a Profit
There are hundreds of strategies and approaches employed by experienced and new traders. Two of the most popular are moving averages and fundamental earnings analysis. Look at any stock’s price chart and enable 50-day and 200-day moving averages on a one-year timeline. The 200-day line is always smoother than the 50-day, but you want to watch for crossovers. When the 50-day line crosses above the 200, after having been below it, there’s a good chance that the security is about to enter an uptrend. The reverse also holds true. This moving-average crossover technique is one of the oldest and most reliable of the many technical indicators in current use. On the fundamental side, investors follow corporate earnings reports quite carefully. When announced earning figures are higher than expected, it’s often a good time to purchase that company’s shares. Again, the contrary often holds true, meaning that you’d expect stock prices to fall when earnings don’t meet expectations.