Knowing that the financial market is a very broad branch, with several niches in which a trader can operate, there are many doubts regarding which asset to trade, and through which strategies.
Many novice traders ask questions such as: which best asset is best to trade: stock, index, dollar or other? They also ask about graphic time: is it better to operate in 1 minute (1M), 5 minutes (5M) or 15 minutes (15M)? Which of these times will bring me the most results?
In addition, there are many doubts about the best technique to use for positive results and significant profits.
If you are a beginner trader, or are interested in these issues, continue reading this article. We brought a lot of information about these issues, in order to clarify a little about the market and the performance of a trader. Come on?
Trader: What is the best time frame to trade?
First, we always emphasize that your personal profile is what determines the modality that you will operate. If you know yourself, you will know how to make the best choices and succeed in the market.
One tip is to study all types of modalities before starting to operate, to see which one fits your profile best.
If you are a more daring person, who is not afraid to do operations with high capital in a short time, the suggestion is to try smaller graphics, because the shorter the time frame, that is, 1 minute, the greater the market movement. On the contrary, the longer the time frame, the lower the price movement, as the asset takes a longer time to move or break, both up and down. So if your profile is for shorter trades, you can try to trade Day trade, with 1-minute charts, if you have a profile for medium or long-term trades, you invest in 5-minute, 15-minute charts or even even the 60 minute chart.
If you have a more conservative profile, you can try to trade in Swing trade or Position trade, in which you buy an asset in one day and you can sell that same asset in a week or a month, for example.
Another tip we have for novice traders is to explore the market in a demo account. You can trade with real market data, but do not invest real money, avoiding mistakes and too many losses. In this account you have the chance to test the various modalities, Day trade, Swing trade or Position trade, and see which one best fits your trader profile.
Trader: What is the best asset on the market to invest?
This is another question that many beginners have when entering the market: is it better to trade stocks, index, dollar, or other type of asset?
We remind you that this is another issue that has a lot to do with your profile, because if you handle the cents of shares well, it is worth trying operations on this asset, but it is interesting to always be aware of other assets, such as the index and the dollar, because, many times, while one of the assets is stopped, the others are having a lot of movement, giving the trader a chance to enter with purchases or sales, and profit from the results.
What we emphasize is that assets have different behaviors in the market, so it is essential that you know all of them, their characteristics, and what influences their change in value in the market. This requires a lot of study and dedication, but it is very worthwhile, because the more you know about each asset, the better your operation and profits will be.
Trader: What is the best technique to use?
What we always answer when there is this type of question, is that there is not just one technique, and that it is extraordinary, without danger of mistakes.
It is interesting that the trader knows a variety of techniques, and gradually, with his experience, use each one of them according to the time, aiming at profits.
We hope to have clarified some doubts, traders.