Olymptrade offers various types of assets to trade. Click on the asset’s name at the top of the chart window (1). Switching between the Fixed Time and Forex tabs (we’ll explain those in the next lesson), you can see the assets offered (2). The list includes currencies, metals, commodities, stocks, indices, crypto, ETFs, composites and OTC.
The trading universe is massive. In this lesson, we’ll uncover the differences between trading assets and explore their profit potential. You’ll also learn which trading instruments are best for a beginner.
Here are some important things you should know.
1. Chart analysis is universal. Everything you learn about trends, patterns and technical indicators can be used for any asset you choose to trade.
For example, a Moving Average indicator will work for both stocks and crypto.
2. Asset prices change due to various factors. Some factors are related to the global and national economic environment, while others are specific to a particular asset.
For example, an economic downturn in the United States may influence the prices of most assets. The US dollar may decline, affecting the currency pairs that include USD. Investors worldwide may sell riskier assets such as stocks, indices and cryptocurrencies, causing their prices to fall. The prospect of lower production will put pressure on oil. Demand for safer gold, on the contrary, may rise, pushing its price up. Of course, this is a simplified version of what happens in financial markets, but you get the idea.
If Apple reports poor financial results, this news will likely influence Apple’s stock price. We’ll explain how to trade using economic analysis and news in later lessons.
Trading conditions and schedule
Click on the information icon next to the name of a trading asset. You’ll be able to learn more about it: its price dynamics, trading conditions and schedule (when trading is open).
Assets recommended for beginner traders
Start with a few assets and try to understand them, trading on your demo and live accounts. With time, you’ll be able to expand your trading portfolio.
Here are some trading instruments that may suit beginner traders on Olymptrade.
1. Currency pairs
The market for currency pairs is active 24/5. Whenever you open the charts during this time, you’ll see that the prices are dynamically changing, and you’ll be able to trade. You can also trade some currency pairs on weekends using over-the counter (OTC) assets in FTT mode. OTC trading is executed outside of formal exchanges, making it possible to trade on Saturdays and Sundays, when the major trading sessions are closed.
Consider a currency pair as a single asset where one currency is priced in the other. So, if EUR/USD is quoted at 1.1000, that means 1 euro costs 1.1 US dollars. An increase in EUR/USD means the euro is rising and the US dollar is declining.
Start with major currency pairs such as EUR/USD, GBP/USD or USD/JPY — the most widely traded currency pairs.
2. Stocks
Trading stocks allows you to profit from the rise and fall of shares in publicly traded companies such as Apple, Facebook or Coca-Cola. You can monitor the news about their earnings and new products. Notice that stock trading is open during particular times of the day, depending on the time zone of the exchange where a stock is listed.
Start with popular and well-known companies, as they tend to have more stable stock prices.
3. Composites
Asia Composite Index and other composites are typically based on tokenized assets, suitable for daily trading and open for trading at almost any time. They often have more stable trends, which are easier to forecast for beginners.
Diversify gradually
Focus on the trading instruments with dynamic prices and the ones you understand. It’s important to start small, use appropriate risk management techniques and gradually increase your trading exposure. As you gain experience, you can turn to other types of assets. Here are some of them.
Gold is a popular asset that can provide diversification and a hedge against inflation. Trading on gold is open 24/5.
ETFs (exchange-traded funds) will allow you to trade or invest in a basket of stocks, bonds or other assets. SPDR S&P 500 ETF is a good starting point.
Cryptocurrencies offer plenty of opportunities to trade on big, rapid price moves.
Crypto assets on the platform are free of the hacking risks that crypto exchanges are sometimes exposed to. The crypto market is open 24/7.
Next
In the next lesson, you’ll learn about the different modes for trading the assets you’ve chosen.