The market is on the verge of a 10-year bull run and investors are looking for solutions to counter the extreme volatility that marked 2018. With the FED’s rising interest rates, the trade war with China, the Brexit situation and the plunge of the Dow Jones index last year, investors and traders all over the world are stepping on eggshells. Nevertheless, the previsions for 2019 are optimistic, as you have a handful of options. Today, we will discuss the best markets to trade, no matter what is your investment of choice.
1. DAX 30 and CDFs Trading
Those familiar with CDFs trading, in general, know a few things about the DAX30 index (Deutscher Akienindex or the German stock index). The index reflects the core economic performance of Germany, which happens to be one of the strongest economies in the entire world.
Similar in part with the Dow Jones in the U.S., the DAX30 historically proved to be more resilient to dramatic changes. The DAX30 consists of the 30 most potent German companies (all having global operations), thus offering traders the chance of exposing their portfolios to both domestic and worldwide economy.
Why do we consider the DAX30 one of the most promising markets in 2019? First, because the 30 blue-chip companies composing the index are not likely to register market falls. On the contrary, some of them are expanding as we speak and planting stronger roots at home or abroad. If you think about names such as Bayer, Daimler, or BMW, you know you have a fertile ground to implement your CDF trading strategies with success.
Another reason why investors prefer the DAX30 is that it offers the following benefits:
– Long trading hours, which can work in your advantage, as it operates Monday to Friday between 6:01 and 19:59 (GMT), updating with futures prices for the next day and, most importantly, updating even after closing time;
– It offers tight spreads;
– It has optimal volatility levels, helping you make profits by implementing scalping strategies;
Many of the DAX30 companies also trade on the U.S. Stock Exchange (one opens when the other closes), and you can take advantage of both;
– Brokers recommend the DAX 30 as a long-term venture, as it is a safer and more affordable approach to investments.
Just as you plan for profit with your own business in the long run, you should also see the DAX30 as an opportunity to expand your investment portfolio. Discuss things with a reliable broker able to give you access to a robust trading platform, learn, and improve your skills on CDF trading on DAX30. You may have pleasant surprises this year!
You might think that Forex is a terrible idea – given the economic instability and sudden dramatic changes occurring in the U.S., U.K., and Europe as a whole, but you would be wrong. As you undoubtedly know, the Foreign Exchange Market is the most liquid market in the world. More conservative and beginner traders fear the extreme Forex volatility, susceptible to rising or fall (in some currency pairs) in a heartbeat, but seasoned traders take advantage of the market moves. Of course, the risk is high, but depending on your trading strategy, you can reap excellent benefits.
Here are some of the reasons analysists consider Forex to be one of the most promising markets for 2019:
– You can begin trading on Forex with as little as $100, in comparison to the stock market, which requires significant starting capital from your part;
– Analysts suggest that the USD will slow its growth and lose its strength slowly against the Euro. The bullish sentiment will wane, slowly and steadily, as many Forex traders expect the Euro to stand up against the dollar.
– Many are looking towards “safer” currencies, such as the Japanese yen.
– Traders knowing their politics will most likely take advantage of everything new set to occur this year: important elections in about 20 countries, some clear decisions on Brexit, the conclusion of the US-China trade war, preparations for the 2020 US elections, and more. Emerging markets will also take advantage of a softer dollar, with new perspectives coming from Argentina and India. Counting all these aspects into a trading strategy will help Forex traders to day-trade or scalp Forex with surprisingly positive results.
Last but not least, Forex is one of the most accessible markets to trade. With responsible brokering agencies offering robust online trading platforms and software and with unprecedented access to news and media coverage, Forex traders will have their hands full this year.
3. IPO Stocks
The most straightforward rule in investing – no matter what types of assets you prefer – is to buy low and sell high. On the other hand, you can buy high and keep your portfolio for years, making good profits on the back and reputation of some companies that are likely to grow. If you have some stocks in global giants like Amazon, Alphabet, or IBM, you know things look good in the future.
However, if you are a beginner in buying stocks, you should look forward to this year’s IPOs – companies that will go public shortly. Some are rumors, and some are well-laid plans, but the most anticipated names in the IPO market include tech wonders such as Pinterest or Palantir, Slack, Airbnb or Uber.
Analysists cannot be 100% certain of how the market will look in the next ten years, but one thing is sure – some of the companies rumored to enter the IPO market will prove themselves worthy of your investments. You will need capital and an excellent broker to help you make the best decisions, but if the stock market is the one attracting you the most, you should watch out for the news.
Many things are susceptible to change this year, and the market is volatile and risky if you do not know what you do and how to do things. On the other hand, this year will witness some changes that will provide investors with excellent opportunities to gain from short-term strategies or long-run smart investments.