Prepare your basket because today it’s time to go to the market. But not. You are not going to buy meat or fish, fruits or vegetables. Today the only thing you are going to put in the stock market are financial assets.
The time has come to find out what they are the 5 favorite markets of traders and learn a little more about them.
1. THE EURO DOLLAR
If you are one of those who only know the euro and the dollar, don’t worry, we haven’t just invented a new currency. he euro dollar records the change in the exchange rate of the euro against the US dollar
. Basically, when the price of the euro dollar rises it is because the euro increases its value against the dollar. On the other hand, when it loses value, the euro dollar falls. These fluctuations in the value of the two currencies are the ones to watch carefully if you want to trade in this market.
We cross the ocean to travel to the financial giant: the USA. There, one of the big markets is the S&P500. In fact, is one of the oldest stock indices in the world. It was born in 1923, with 233 companies, but currently the 500 most important companies in the American economy are listed.
To be part of this index, among other requirements, you must have a market capitalization greater than 4,200 million dollars. Come on, if you have a small or medium business, forget about applying. But if you’re the owner of Amazon, Microsoft or McDonald’s, don’t worry, you’re already in this market is extremely influential and its movements have immediate effects on the rest of the global economy.
It is the world’s first electronic stock market and the second largest in the US. It is the preferred market for technology fans, because it has more than 3,800 companies in this sector and has more than 7,000 shares. But, in addition, it has 3 sub-indices, the NASDAQ Composite, the NASDAQ Biotechnology and, the most important, the NASDAQ 100 . The latter is composed of the 100 most powerful American companies according to the volume of sales of their shares the latter is the one generally traded. Surely you did not think that watching your favorite Netflix series or buying the latest Electronic Arts video game could influence the financial market. Well, you were wrong.
The fourth market is precisely the one that records the price of this precious metal. The price of gold varies every day and these variations can help us to obtain profits.
You just have to know how to buy or sell at the right time. So, if you want to make your finances live a golden age, this market can be of great help.
But there is another gold that does not shine and with which we can also trade: OIL. The black gold.
There are two oil prices, the West Texas (American) and the Brent (European), both are tradable, they have different prices. Traders generally prefer to trade the West Texas (American)
The most coveted fuel in the world also has an essential weight in the financial sector. Its listing price determines the movements of this commodity market, which is one of the most influenced by geopolitical issues.
Therefore, it is an index dominated by the US government, (only West Texas) which is the country that produces the most oil in the world. So it is Trump who decides to refine the market in favor of your operation or make it look very black to you.
That said, you can now add one more stop to your route through the market. Then, from the fishmonger, the butcher and the greengrocer, go on to buy foreign currency, business shares and raw materials. Dare to take the cart of finances, because the stock market is at your fingertips.
Trading is not for everyone. It’s a risk. It is a reward. You must be prepared for the unpredictable, and for that it is best to study with the best trading teachers.