Written by Kendal Smith, link building and outreach specialist, on behalf of Avatrade.
Are there solid opportunities for investors amid a turbulent market, global political crises, and continuing COVID repercussions?
The answer is a resounding yes, and there are multiple reasons why so many active, home-based traders are looking forward to the second half of 2022. Some companies have posted big losses while others have notched huge gains.
For those who follow the securities markets on a daily basis, it’s important to note that after a precipitous fall in index values from 1st January of 2022 through March, share prices across the board have recovered well and climbed back from early March lows.
What should individual traders be on the lookout for as the months pass?
The first step is to make a list of potential opportunities that are likely to appear during the remaining months of the year, based on your own research and analysis. Next, consider how the securities markets and online platforms are changing.
Take into account how inflation, COVID, and the Ukraine-Russia war might affect particular corporations’ profits. Likewise, it’s always wise to examine a few of the year-to-date best-performing stocks and gain an understanding of why they’re doing so well.
Finally, keep in mind that it’s imperative to do research, stay informed about the newest software products, learn basic technical and fundamental analysis skills, and find a broker who suits your needs.
Opportunities in an Uncertain 2022 Stock Market
No matter what asset classes you trade, there are dozens of excellent opportunities in the securities markets. Regardless of whether you use one of the top US-based, European, Asian, or South African trading platforms, there’s plenty to be gained by tracking current events.
The war in Eastern Europe is a case in point. Individuals who follow those events closely have noticed the sensitivity of oil prices to global military unrest. The phenomenon holds true, especially when one or both participants in a military conflict are major petroleum producers.
Since the early days of the conflict, global petrol prices have shot up to historic highs.
What’s the lesson? Uncertainty and conflict can be positive movers of a particular sector’s securities. In the case of the ongoing war in Eastern Europe, it’s worthwhile to follow oil stocks closely.
Some people choose to buy in with the expectation that there’s more room for increases. Others opt to short sell in an attempt to earn a profit if prices move back to their 200-day averages.
How the Trading World is Changing
It’s important to examine the finance secrets of big tech and how simplified ways of buying and selling have brought so many new entrants into the market. The top online brokerage firms now offer sophisticated simulators so account holders can practice order placement skills before going live with real money.
Additionally, newcomers can take advantage of copy trading, a technique that lets them ride along by duplicating the buying and selling activity of experts. Plus, the use of CFDs (contracts for difference) makes it possible for anyone to take part in their favourite sector without owning underlying assets.
That’s because CFDs are contracts that let participants predict price direction for potential profits.
Rising inflation, the final stages of the COVID pandemic, and increasing political conflict between China and the U.S. are long-term factors that have all had a significant impact on corporate profits worldwide. Earning a profit in turbulent times means staying abreast of all the news, not just financial headlines.
Performance Stocks and Why You Should Watch Them
What have been some of the winningest corporate shares since the beginning of the year?
The energy sector has enjoyed one is its most stellar seasons in recent memory. It’s often the case that otherwise poor economic news, like wars, inflation, and pandemics, lead to excellent performance in the healthcare and energy sectors.
Three of the most profitable corporations since 1st January are energy producers or developers, namely Exxon (XOM), Pioneer Natural Resources (PXD), and Valero Energy Corp. (VLO).
All three have risen in price between 34 and 38 percent in just 16 weeks, an almost unheard-of demonstration of strength in a see-saw global economy.
How to Make Your Research Count
If you’re planning to take advantage of the many opportunities available throughout the rest of 2022, be sure to have the best technology and do in-depth research on whichever asset class you plan to follow. Knowledge is power.
The more you know about your chosen field, the more likely you’ll be to make smart trades, set careful stops, and know when to exit a position with money in the bank.
Software, Strategies and Brokers
Read reviews of the top trading software and do free trials of the ones that interest you.
Study the basic technical and fundamental strategies, being sure to include a close look at moving averages, earnings per share, and various ways to analyse price action and momentum.
Spend time finding a broker who caters to whatever your specialty is. It’s helpful to study brokers’ websites to gain a feel for who their main clients are. Some focus on newcomers, while others offer specific services in forex, CFDs, cryptocurrency, options, and additional areas.
[Image – Photo by Dylan Calluy on Unsplash]
