Mar 21 2016
Stockbroking Essentials for 2016
We have already witnessed a substantial amount of volatility in 2016 and if the past few months can serve as any indicator, the bears may very well dominate the remainder of this year. Those who are already involved within the markets or who may be considering an entrance into this malleable environment should be aware of some of the essential takeaway points to keep in mind. Which strategies should be embraced and are there any notable pitfalls to avoid? Let us briefly examine both of these topics in greater detail.
Modern Times Require Modern Platforms
High-speed Internet access and user-friendly trading systems have opened up the investment world to anyone with a will to succeed. It is still of paramount importance to appreciate that not all platforms offer the same level of efficiency, clarity and responsiveness. Traders who hope to enjoy a substantial edge over their competitors have therefore been taking advantage of the instruments that can only be found at CMC Markets. Unlimited conditional orders, highly advanced platform features and mobile-friendly applications are but a few of the metrics which have enabled this brokerage to offer the best return on investment throughout Australia. The concept of a second-best firm has no merit within the world of stockbrokers.
One Eye on the News
Access to real-time news feeds can be either a benefit or a disadvantage. As any late-breaking stories circulate around the global economic community in a matter of minutes, staying ahead of this curve is now a necessity. Those who fail to monitor such events are bound to find themselves at the losing end of what would have otherwise been a profitable trade. This is another motivating factor which has drawn investors of all sizes towards the systems provided by CMC Markets.
Diversification
A diversified portfolio can produce profits regardless of external market conditions. This is of particular importance when we have already observed that 2016 seems to be bordering on a bearish market. It is therefore deemed wise to spread one’s investments across a number of different sectors; some of these offering more liquidity than others. A few examples here include:
- Currency pairs.
- CFDs
- Treasuries
- Commodities
- Warrants
- Funds
- ETFs
Although many will choose to adopt a more prudent stance, we should always recall that fortunes tend to be made when the markets are seen to be taking a downturn. This stance is perfectly illustrated in the expression “never buy when it is high”.
These flexible principles should always be used in synergy with more traditional methods such as hedging, the placement of automatic stop losses and chart analyses. Those who approach this year with the correct mindset should expect to enjoy superior levels of performance. When we combine the efficacious tools provided only through CMC Markets, it is clear that every (somewhat) dark cloud has a silver lining. Please browse through our site to learn more in regards to what is offered.