What should beginner traders trade?

Do you think what beginner traders should trade first?

From my point of view, starting with INDICES, such as Dow Jones or S&P 500, could be the best. Some reasons are:

• Diversification: Indices are made up of multiple stocks from different industries. By trading indices, you can achieve diversification in a single trade. This means that if one stock doesn't perform well, it may not have a significant impact on the overall index, reducing your risk.

• Accessible information: Indices are widely followed and reported on by financial news outlets, providing you with abundant information and analysis. You can stay up to date with market trends, news, and economic indicators, which can help you make more informed trading decisions.

• Positive swaps for LONG positions: I know some brokers offering positive swaps for holding LONG indices positions overnight. It’s highly advantageous if you apply the buy-and-hold strategy, because you can make profits from both up trends and positive swaps. And the stock market generally goes up over the long term.

How do you think?

the best choice for beginner traders will depend on their individual circumstances, preferences, and willingness to learn and adapt to the markets they choose to trade.

It all depends on the person him/her self, there is no answer that fits all, some people are really into learning and some are not.

its a personal choice , so really difficult to say anything.

Personally, stick to one market. Understand what moves that market. Master structure and trend on that market.

For beginner traders, it's advisable to start with assets or instruments they understand well and feel comfortable analyzing. Stocks of reputable companies with strong fundamentals are often recommended due to their relative stability and abundance of information available for analysis. Additionally, beginner traders may consider trading popular currency pairs in the forex market, such as EUR/USD or GBP/USD, as they offer high liquidity and ample resources for learning. Another option is to explore trading major cryptocurrencies like Bitcoin or Ethereum, which have active markets and extensive educational resources. Regardless of the choice, starting with familiar assets can help beginners build confidence and mitigate risks.

Trade the majors only. I do not agree that you should trade 1 market only because that will lead to over trading. Some days there are no good trades but if you trade 1 market that will be so frustrating and most people will take trades when they are not really there

My personal opinion: For beginners, you should start with EURUSD

For beginner traders, focusing on less volatile and more liquid markets is prudent. This typically means starting with major currency pairs in the forex market, such as EUR/USD or GBP/USD, due to their high trading volume and relatively stable price movements. Additionally, blue-chip stocks of well-established companies are suitable for novice traders, offering stability and ample resources for research. Index funds or ETFs tracking broad market indices provide diversified exposure and reduce individual stock risk. It's crucial for beginners to prioritize education, practice with demo accounts, and gradually increase position sizes as they gain experience and confidence in their trading abilities.

HungTrading posted:
Do you think what beginner traders should trade first?

From my point of view, starting with INDICES, such as Dow Jones or S&P 500, could be the best. Some reasons are:

• Diversification: Indices are made up of multiple stocks from different industries. By trading indices, you can achieve diversification in a single trade. This means that if one stock doesn't perform well, it may not have a significant impact on the overall index, reducing your risk.

• Accessible information: Indices are widely followed and reported on by financial news outlets, providing you with abundant information and analysis. You can stay up to date with market trends, news, and economic indicators, which can help you make more informed trading decisions.

• Positive swaps for LONG positions: I know some brokers offering positive swaps for holding LONG indices positions overnight. It’s highly advantageous if you apply the buy-and-hold strategy, because you can make profits from both up trends and positive swaps. And the stock market generally goes up over the long term.

How do you think?

Starting with trading indices like the Dow Jones or S&P 500 can indeed offer several advantages for beginner traders:

Diversification: Indices provide exposure to multiple stocks across various industries, offering built-in diversification. This can help mitigate risk compared to trading individual stocks, where adverse movements in one stock can have a significant impact.

Accessible Information: Indices are closely monitored and widely reported on by financial news outlets, providing abundant information and analysis. Access to market trends, news, and economic indicators can aid in making informed trading decisions.

Positive Swaps for LONG Positions: Some brokers offer positive swaps for holding LONG index positions overnight. This can be advantageous for traders employing the buy-and-hold strategy, potentially allowing them to profit from both upward trends and positive swaps. Additionally, historical trends suggest that stock markets tend to appreciate over the long term, potentially enhancing returns.

Overall, trading indices can be a suitable starting point for beginner traders due to the diversification benefits, accessibility of information, and potential for positive swaps on LONG positions. However, it's essential for traders to conduct thorough research, develop a solid trading plan, and practice risk management regardless of the asset they choose to trade.