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Trading can be confusing for a new comer. There’s so much to consider when you first start off. All the mechanics of buying and selling, trying to make a million bucks – or just a positive return, understanding what a P/E ratio is, and a host of other unnamed things.
But one of the biggest areas of concerns is just getting started: trying to find the right market to trade. How do you know what market you should target, especially when you’re just starting off.
Defining a Trading “Market”
First off, we should define what a trading market is. What is a trading market?
For our purposes, a trading market is a broad category or financial instruments. Most people become interested in trading because of stocks. Stock trading is a probably the most popular form of trading.
But what are other types of trading?
According to an Investopedia article about the question, these are several major markets to trade for retail traders like us.
- Stock Market (equities)
- ETF Market
- Forex Market
- Options Market
- Contracts for Difference (CFD)
- Commodities
- Bonds
- Physical Assets (gold, silver, etc.)
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