There are so many misconstructions among a lot of people that trading is all about jumping in and out several times a day to try and gain as much profit as possible. It may be perfectly sensible in the stock market which has so many strong trends however, there are a certain few who simply don’t want to watch their screens all day and wait for the perfect time to place in their trades to maximise their gains. There is a better and more relax approach when it comes to trading.

Technology has a lot of perks that would allow traders to constantly monitor their trades. How then should they make the best of this trend? Financial markets in recent times can be easily accessible with the internet. Although we have the best access within our finger tips markets however still run basically the same; going up and down. The secret is therefore approaching the market smartly in a well disciplined approach.

This year is vaguely peculiar for indices and equities. There has been a relentless uptrend so far with nothing short of minor corrections along the way which is quite good as compared to the exhausting Eurozone crisis.

Presently, now is the best time to buy and hold investments but not so much for the short-term trader. It may be a tempting try to call a turning point in the likes of the Dow and FTSE being such a cliché. Traders should really try to place their trades in line with the obvious trends. It may sound easy but it actually needs a lot of patience especially in timing the best opportunity to jump on board.

When it comes to companies with an interest among IG clients, how does trading stocks differ from trading indices? Specifically, larger blue chips tend to hoard the most attention, but there are still a lot of people pursuing smaller much more speculative shares. Those trading shares tend to have a much more laid back approach than those trading with indices.

Forex markets such and indices such as the Dow and the FTSE for instance are very similar in terms of their characteristics and appeal to clients. The main difference is volatility. It is fairly important to give the market time in order for decisions to be sound and not indecisive. Moreover, it is also wise not to set stop-losses too narrow and trade small so that the risks per trade are low and you can always get back from a smaller loss.

Patience is perhaps the most important quality that traders should posses. It really doesn’t automatically mean that just because the market moved, you should make your move as well. The temptation is always present in the beginning especially when tight stop losses are already in place. It will be very unlikely that you will get it the first time when you think the market will move on your favour. A little bit of time and patience will certainly result in great profit.

Last Updated: January 27th, 2021