Profits matter little if they are not considered to be sustainable. This is the main reason why the phrase “sustainable growth” is popular this year. With so many traders wary of the perceived market volatility, is makes sense that a more risk-averse attitude will remain prevalent during the remainder of the year. What are a few of the tips and tricks which will enable even novice traders to embrace this type of growth?
Embrace the Volatility
Volatility will no longer be considered the “new normal”. It will simply become the normal. Whether referring to the inherent weakness of the Eurozone or the entrance of the Chinese yuan into the global marketplace, 2016 is set to be a red-letter year in terms of currency movements. However, this is not necessarily a bad thing for active Forex traders. Those who wish to capitalize on short-term positions are likely to enjoy sustainable medium-term growth.
Due to such volatility, it is wise to diversify. In this sense, we are referring to adopting positions within different underlying assets such as commodities, CFDs and indices. This could help to offset any sudden currency movements (such as if the purported Brexit becomes more of a reality). This same principle in regards to diversification is just as true within the Forex markets. Multiple pairs should be chosen and followed regularly.
The Power of the Mobile Trading Platform
Smartphones, tablets and other mobile devices are taking the place of traditional laptops and office computers. These are highly efficient and with a greater availability of 4G connection speeds, platforms such as CMC Markets can now be enjoyed at any time and from nearly any location. This mobile-friendly trend is expected to pick up pace and some even theorise that laptops themselves may become obsolete within a decade. It is therefore wise to adopt mobile trading methods sooner as opposed to later.
Build Your Nest Egg
No one knows what the future holds. There is perhaps no better example of this mantra than the past ten years in terms of market conditions. So, 2016 should be the year when you begin to build your nest egg for more distant times. Such a conservative approach is also pivotal for anyone who may be averse to the potential unknowns in regards to the solvency of the European Union and the impact of the yuan upon global markets.
2016 can be viewed in many ways. Some feel that the markets will stabilize themselves while others are looking towards increased volatility (and therefore opportunities). Irrespective of individual positions, the fact of the matter is that building sustainable wealth is much easier than many believe. With the help of CMC Markets and by taking advantage of the numerous analytical tools at your disposal, you can now realize all that the world of currency trading has in store. It will nonetheless be interesting to see what the remainder of this year will offer the proactive trader.