Page 9 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

Chapter 2:

Selecting Your Financial Market

Choosing the best market(s) for you to trade or invest in may take some time.

Eventually, you will settle on your favorites and will develop an understanding of the
unique characteristics of these markets. This will give you an edge in effectively
implementing your trading and investing system to generate profits. If you are new to
the markets, this chapter is designed to give you an overview and head start on what
direction to go in.

Worldwide there are an overwhelming number of markets to choose from, and deciding
what market or markets you will trade is an important.
You may decide to move from one market to another depending on market cycles and
depending on your developing skill level. Each market has its own unique personality
and characteristics. You may enjoy one market more than another and ultimately be
more profitable in one market over another.

Do not spread yourself too thin and try to learn about all the markets at one time. Pick
one or two and develop confidence and skill in those before experimenting with new
markets. When you become a master of one market you will flow with it and be able to
be more profitable.

Selecting a Market

Selecting a market to trade is a combination of several factors such as:

• Market cycle
• Volatility
• Liquidity
• Trading or investment account value
• Market price
• Your skill level
• How much time you have to monitor the markets

9 | P a g e