2022 was a year of great market volatility, bringing strong price fluctuations that attracted many traders. As economic and political instability seem to continue in the new year, 2023 might bring new opportunities to traders and investors alike. May this be a suitable time for novice traders to enter the market? The answer depends on your personal financial goals. 

To decide whether to start trading in 2023, you may consider your short-term and long-term financial objectives. Firstly, you should understand the difference between trading and investing. By enhancing your knowledge about the pros and cons of each approach, you may focus on the suitable option for you and choose the best tools and methods.

Once you figure out the difference between trading and investing it may be time to gather more information about assets for trading and choose the appropriate tools according to your trading preferences and style.

What to Trade in 2023?

Choosing the right trading instrument for you is one of the most important things. What do you prefer: stocks, forex, cryptocurrency? Maybe you are specifically interested in trading commodities? Or perhaps you don’t mind trying them all?

All types of assets for trading have their own characteristics and may require different trading methods. For example, stocks and forex are among the most popular assets for trading. While having a diversified portfolio with different types of assets to manage risks is important, trading too many assets at once may be confusing for novice traders. 

Below is a list of the most popular assets for trading and their characteristics. 

Trading CFDs on Stocks

A stock, also known as a share, represents fractional ownership of a company. When you buy a share of a company, you are essentially buying a small piece of ownership of that business. 

However, you don’t always need to actually purchase stocks for trading. You may choose to trade stocks as CFDs (Contract for difference). In this case, instead of buying a share, you would simply try to predict the direction of the future price fluctuations of the chosen asset. Depending on whether the result confirms your predictions, you may receive a profit or lose the initial investment. 

On top of that, when trading CFDs, it may be possible to achieve positive results not only when the stock price increases, but also in case of a decline. This method is called short-selling, and it may offer a variety of trading opportunities in a downward market.

There are nearly 190 stocks for trading via CFDs on the Novumarket platform that include the most traded stocks from top global companies. You may choose stocks from different sectors that might perform better during certain business cycles. Check out this article to learn more about how to analyze stocks for trading and understand how CFDs on stocks are traded.

Trading CFDs on Forex

The term “Forex” refers to the foreign exchange market, or simply FX. The forex market is the largest and most liquid market in the world. This means larger trade volumes due to high demand and risks linked to market volatility. Here are 2 basic steps that may help you understand forex trading better.

Pick a suitable trading approach

There is no one forex trading method that suits everyone. One thing you should always remember is that the forex market is open 24 hours a day 5 days a week. There are busy periods that tend to have larger trade volume and significant price fluctuations, so it may be important to choose the suitable time to trade forex. If you cannot trade during the busy periods, you may need to consider a personal forex trading approach that would suit your schedule. 

Choose your currency pairs

It is also important to settle on the currency pairs for trading, which are generally put into two main categories: major and exotic. The former are represented by the most popular forex pairs such as EUR/USD, GBP/USD, USD/JPY and USD/CHF. The exotic pairs are less common, but they may sometimes be more volatile. These include currencies like the Mexican peso and the Swedish krona.

Each currency pair may be affected by different external factors, so you might want to stay informed about the market news related to the chosen assets. For instance, you can check the most important events that may influence specific currency pairs right from the Novumarket platform. This way, you can start trading forex while staying on top of current news and learning about assets for trading without leaving the platform.

In Conclusion

If you are planning to enhance your trading approach in 2023, it is important to be more flexible and keep learning and testing different methods. Devoting some time to studying and practicing various trading methods may help you identify opportunities and get more consistent results. You might also want to keep in mind risk-management instruments and actively include them in your trading approach. Test your method and don’t get discouraged if something doesn’t work out right away — mistakes are a part of the learning process, they help us get more experience and move forward.