MARKET THEMES4 min reading16/07/2021
10 tips to create a perfect trading plan
Build a solid trading plan is a key point to achieve trading success. Discover more about how to build a winning trading plan on Fineco Newsroom.
Vaccination progress and strong economic data have eased the effect of Covid on market volatility. However, rising inflation caused a spike in the VIX Index. The next few months will be difficult to predict and could bring trading opportunities.
Trading indicators are part of any technical trader's strategy. Discover on Fineco Newsroom the top 10 trading indicators that every trader should know.
As the pandemic recovery gets underway we look at the world economic outlook for the rest of 2021 and 2022. Economists and academics are divided on the global economic outlook with the extent and impact of inflation a key factor.
Cryptocurrency has been gathering headlines lately, but you may find yourself asking ‘what is cryptocurrency?’. Here we look at the basics of digital currency. Highly volatile, it requires caution but there are crypto investment opportunities.
Changes brought about by the Covid pandemic mean challenges but also opportunities for investing in commercial real estate. Amid the instability some parts of the market have thrived and there is a growing trend for more sustainable buildings.
As the sector reopens after the latest Covid-19 lockdown, there are opportunities to invest in tourism and travel. However, this is a sector to be approached with caution as it remains subject to risks ranging from new variants to changed habits.
Batteries’ role at the heart of the energy revolution is creating opportunities to invest in copper and lithium, while rising demand and fiscal support are also benefitting battery manufacturers. ETFs are an alternative to direct investing.
Scarcity may make water the new oil, with both supply and demand issues driving new approaches to water use. Water investments are rapidly gaining prominence with a growing range of water stocks and more thinking about how to invest in water.
The question ‘What is EBITDA?’ is a common one. It’s one of several ways to measure the value of a company, along with P/E ratio, net profit and revenue. All have strengths and weaknesses and can be used in combination for a more complete view.
The Nasdaq is well-established as the index of choice for diversified exposure to the technology sector. Here we look at what investors need to know: the Nasdaq’s meaning, purpose and function, as well as where potential opportunities may lie.
There are several benefits of investing in technology, as strong Q1 2021 results show. However, there are also challenges when investing in tech stocks with increased regulator and consumer scrutiny of big tech’s dominance and practices.
Joe Biden’s first 100 days as president were dominated by recovery from the pandemic. As his priority policies start to take centre stage, we look at which sectors may win or lose and where the opportunities might lie for traders and investors.
If you want to invest in precious metals all that glitters need not be gold. There are reasons to invest in silver, platinum or palladium as each have industrial purposes. Where are the opportunities and risks for investing in metals in 2021?
The sustainability revolution may be more powerful and happening more quickly than many expected, bringing wide-ranging change around the world. There are also investment opportunities, with a growing choice of ways to invest in sustainability.
Shifting demographics, technology and the Covid-19 pandemic have combined to benefit the healthcare sector, creating investment opportunities. There are three main paths to invest in healthcare, each with their own risk and reward considerations.
The secret when you invest in technology is to spot the investment opportunities before they are hot. That’s easier said than done but there are ways to increase the likelihood of spotting those investment opportunities while avoiding pitfalls.
Inflation has been low for a long time but fiscal stimulus and economic recovery from the pandemic could mean an inflation wave. Here we look at types of inflation, the inflation forecast for 2021 and potential opportunities for investors.
Low interest rates and quantitative easing have made diversifying a portfolio more complex. But there are a few rules which can help you build a resilient portfolio, diversifying risks across a range of investments and avoiding nasty surprises.
Diversifying your portfolio is one of the investing basics. But it’s not as simple as just adding assets. Here we explore some of the reasons for diversification in investing and what to watch out for to get the best results for your portfolio.
The simple bond definition is a form of debt - the investor loans money to the issuer. But there’s much more to how bonds work, characteristics of bonds and different categories of bonds as well as how they respond to economic and market factors
The continuing vaccine programme and prospect of economic recovery are contributing to lower levels of market volatility, as seen in the VIX index. While markets remain sensitive to shifts in the vaccine rollout, there are trading opportunities.
Do you want to start trading on your own? Here are some tips to learn how and where to trading as a beginner.
As we enter a new tax year this is a good time to make sure your investments are looking forward and not back, using your tax allowances throughout the year to <strong>create a balanced portfolio</strong> in a time of great change across the investment markets.
Simplicity, low charges, broad investment options and tax advantages make ISAs a natural choice for many. However, there’s more to them than you might think. By getting to know ISAs better you can make the right choice for your financial plans.
Tax isn’t always a top priority when it comes to investing, but can make a big difference to your outcomes. By being aware of how your investments may be subject to tax, you can minimise its impact. A stocks and shares ISA is a good start.
Do you want to start investing on your own? Here are some tips to learn how and where to invest as a beginner.
Climate change is an increasing priority for policymakers and regulators, with Joe Biden leading the way as US president. There are clear trading opportunities for renewables, but fossil fuel providers still have a role to play too.
Effective risk management strategies and techniques are essential to maximising potential trading opportunities while mitigating the various risks traders face. Hedging plays an important part in trading risk management but can involve costs.
Being clear on your style and strategy as a trader can help you to find and get the most from a platform that meets your needs. Here we look at some of the terminology involved and what it means, from scalping to Fibonacci trading.
Indices are a popular entry point to stock markets for traders and investors. By understanding how they are built, what drives or hinders their performance and how to trade them effectively, indices can be an important part of a portfolio.
Trading risk takes many forms and is influenced by various factors. By being aware of some of the main risks – exchange rate risk, interest rate risk, liquidity risk and behavioural risk – you can then start to think about how to manage them.
Rewards from trading require risk and making sure potential rewards justify the risks involved is crucial. Trading and financial risk management means establishing the potential risk/reward balance and using tools to help mitigate those risks.
The tax year end presents a good opportunity to spring clean your portfolio, making sure you are using your tax allowances and starting the new tax year with a balanced portfolio which fits with the prevailing market conditions.
News of Covid-19 vaccines and a decisive US Presidential Election result have contributed to lower volatility as seen in the VIX index. However, a Brexit deal still hangs in the balance and sources of volatility for traders remain.
While US President-elect Joe Biden still has some hurdles to clear before he is sworn in on January 20, it seems the fight for the White House is finally drawing to a close. The balance of power in the Senate, however, is still to be decided.
In some ways ‘going long’ is simple: hold an asset and benefit if its price increases. You can also go long without holding assets, e.g. trading options or CFDs. By understanding the differences you can make the most of the opportunities.
Shorting can present opportunities for traders to benefit from falling asset prices or hedge a position, with leveraged trading through contracts for difference one option. Getting the best out of shorting takes market awareness and a good understanding of the risks involved.
Covid-19 has increased the advantage both of companies embracing digital tech and those enabling this progress, creating investment opportunities. Collective investments are one way to access what is likely to be a persistent trend.
The elections on 3 November will influence US stock market performance in the coming months as Trump and Biden’s contrasting policies favour different sectors. A disputed result is possible, which may trigger significant short-term volatility.
After a reasonably settled few months, factors such as the US Presidential Election, Brexit, technology stock pricing and progress towards a Covid-19 vaccine mean volatility is likely to increase, creating opportunities for traders.
Margin, or leveraged, trading can lead to gains proportionately much larger than the investment. However the same applies to losses.
A note of confidence about the future linked to the fiscal and monetary measures put in place or planned to relaunch activity on a solid foundation in the new post-pandemic world.
The success of a financial investment depends on making more right choices for your portfolio than wrong ones. It's important to define a well-structured and planned investment strategy.
Stocks enjoyed one of their best Augusts ever, but volatility is back. The markets are weighed down by the continuous evolution of the COVID pandemic and uncertainty about countries' economic recoveries.
Regular investing is a good way of growing wealth over time. It establishes good financial habits and can balance out investment prices as markets fall and rise, while compounding and pound-cost averaging can both help support long-term growth.
Downturns, like the one we saw at the end of March, are all part of the market cycle: accumulation, mark-up, distribution and mark-down. Understanding why markets behave as they do can help you make the most of the opportunities.
The Dow Jones takes a selective approach to track US industry. As it covers a narrower range than some indices, the movement of each stock in the Dow Jones can have more impact, increasing volatility.
The top global technology stocks dominate markets around the world, with consistently strong performance even during the Coronavirus crisis. There is plenty of potential interest for traders.
Trading and investing: together they can form portfolios which can both meet long-term goals and take advantage of short-term market movements.
Major themes driving global economic growth include digital transformation, climate change, shifting consumer patterns, the ageing population and automation.
The airline sector has been hit first by environmental concerns and then Covid-19. Share prices have reflected the challenges airlines have faced as the crisis has unfolded.
Covid-19 has increased market volatility - as demonstrated in the VIX index - with central banks acting to limit its impact. Rising and falling volatility both present opportunities for traders.
Behavioural biases can mean traders act against their own best interests. By being aware of these behaviours you can take advantage of a range of approaches and automated tools to limit losses.
Agricultural commodities are influenced by both short and long-term elements such as extreme weather, climate change and population growth, making them a popular trading choice. Focusing on a single commodity can be a good starting point.
Contracts for difference are a flexible form of leveraged instrument that can be used to trade based on your view of how the price of an asset is likely to move. They are useful for hedging as well as for exploiting market volatility. But they do come with risks of significant loss so it’s important to protect yourself by putting appropriate risk parameters in place.
By learning to use tools and analysis to judge market sentiment based on numerical measures you can make better, more informed, trading decisions.
Leveraged trading lets you gain exposure to assets for a small amount of their actual cost. This offers the potential for large returns, but it can also lead to large losses. Starting small, having a clear strategy and managing your risks.
Trading has its own terminology. Our jargon-busting glossary makes it clear and easy. Helping you to become familiar with the common terms and trading phrases.
Gold is well known as a ‘safe haven’ asset. But what influences its price over time? Interest rates and inflation, supply and demand and diversification driven central bank buying programmes can be relevant factors?
While renewable energy is on the rise, for now oil remains the lifeblood of the global economy. Driven by the push and pull of global demand oil prices can be volatile and influenced by geopolitical and technical factors.
While currency markets can at times feel irrational, there are some useful indicators out there that can help you get a feel for the likely future direction of travel a currency might take. For example, inflation, retail sales, housing market.
Over confidence, not setting parameters around your positions, falling foul of confirmation bias, being tempted to take short cuts and jumping in to an already crowded trade are all mistakes that all traders can do.
As the central bank for the world’s largest economy, the US Federal Reserve is an influential force, not just on US stock markets but around the world. It may now be focusing on the impact of the coronavirus pandemic.
With interest rates at record lows, cash savings will struggle to keep up with inflation and many studies show that staying invested on the stock market over the longer term is more likely to lead to good outcomes.
There is a lot to think about financially when buying a house abroad and or work there. The potential impact of currency movements is one of them. The good news is that there are some practical ways to take control.
If you’re on the globe-trotting path this can present practical challenges in managing your finances. Using a service that offers multi-currency banking, investing and trading all through a single account is your way.
The fees you pay when investing can make a big difference to what you might get back over the longer term. If you want to maximise your return potential, it’s important to factor all costswhen making decisions.
Currency can affect investment returns in a number of ways, from corporate profitability to the value of dividend payments But currency fluctuations can also be a source of opportunity.
At times of crisis, thoughts may turn to ‘safe havens’ for your money. The US Dollar, the Japanese Yen and the Swiss Franc have each developed a reputation for typically holding their value during uncertainty times.
We can sometimes be our own worst enemies when it comes to investing for the longer-term. Fortunately, there are several practical steps we can take to protect ourselves.
If you transfer money frequently between countries or often pay for goods and services in different currencies, you may benefit from a multi-currency bank account.
From gaining exposure to the potential trillion dollar corporate stars of the future to executing effective hedging strategies, being internationally minded can help you to maximise your opportunities and manage your risk.
When living and working abroad and managing your finances across borders and currencies it’s easy to end up paying more than you need to in exchange rates and other currency transaction costs.
Information or views expressed should not be taken as any kind of recommendation or forecast. All trading involves risks, losses can exceed deposits.
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