2024 is not shaping up to be an easy year for the world in many aspects, including CFD trading and financial markets in general. And as we enter autumn, things will get even more complex, from the Fed interest rates decisions and the US Presidential election, to the wars and conflicts around the world.
So, navigating the remainder of 2024 will require forex and CFD traders to be mindful of the current market and global dynamic, flexible in their trading strategies and trading psychology, and adaptive to change. Here are top 10 trading tips to help you thrive in 2024:
- Stay Updated on global economic indicators
We are likely to see the US interest rates adjustment soon, which might affect the inflation. Also, there can be major news coming from the ECB and Bank of Japan, all of which can lead to significant volatility. It’s also important to keep an eye on the US non-farm payroll (NFP) which is a huge indicator of the health of the US Economy.
- Monitor Geopolitical Events
The world is a volatile and unstable place right now, with the US-China relations being on the rocks, affected by the situation with Taiwan as well as China’s stance on Russia’s invasion of Ukraine. This conflict, being the first war in Europe since the 2nd world war, is likely to continue sending ripples across the global economy and markets alike. Another region to keep an eye on is the Middle East and the escalation of tensions surrounding Israel, which could lead the price of gold to yet another all-time high in 2024.
- Be Prepared for Volatility and Careful with Your High leverage Trades.
In times of uncertainly, markets can move fast. In that case, leverage can play both to your advantage and disadvantage. Keep an eye on it to prevent extreme losses,
- Keep an Eye on Areas with Potential Growth.
There’s never a bad time to think outside the box and explore areas with potential growth. You have probably noticed how NVIDIA’s investors managed to reap amazing rewards with the latest AI wave. And now, Huawei is becoming NVIDIA’s strong contender in the AI world. Technology sector has no indication of slowing down, and it’s important to keep your eyes peeled for opportunities of potential growth and earnings in 2024 and beyond
- Consider Asset Diversification and Multiple Save Havens.
Diversifying is crucial. We know the world is not in a good place in 2024 as gold, the ultimate safe haven instrument, has hit another all-time high this year. Cryptocurrencies could be another area of diversification for CFD traders. We highly recommend that you do your research before you dive into them, though.
- Remember that Trading Psychology is Key
In times of volatility, it may be hard to avoid getting into the FOMO mode. We highly recommend that you keep calm, keep your trading psychology in check, do your research and trade strategically.
- Never Stop Learning.
This one never gets old – keep learning technical analysis, improve your understanding of charts, make it a rule to read global news and remain curious about things around you.
- Keep an Open Mind
Markets evolve, situation changes, and what used to work in the past may no longer work. So, now, more than ever, it’s important to keep an open mind and remain flexible with anything markets bring our way in the remainder of 2024.
