{"id":19896,"date":"2022-07-13T07:30:17","date_gmt":"2022-07-13T11:30:17","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19896"},"modified":"2022-07-13T07:30:17","modified_gmt":"2022-07-13T11:30:17","slug":"this-is-currently-the-hottest-market-to-trade-in","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-is-currently-the-hottest-market-to-trade-in\/","title":{"rendered":"This Is Currently the Hottest Market to Trade In"},"content":{"rendered":"<p>I consider myself a true multi-asset class trader.<\/p>\n<p>Being able to speculate in different markets can be an incredible advantage. That&rsquo;s because volatility is the lifeblood of a trader.<\/p>\n<p>Without volatility, it&rsquo;s difficult for a trader to find an edge that&rsquo;ll outperform the broader market.<\/p>\n<p>Meaning, if volatility is low in one market, then a multi-asset class trader can simply trade somewhere where the volatility is higher.<\/p>\n<p>Think of it like living in an area full of amazing restaurants&hellip;<\/p>\n<p>If you&rsquo;re in the mood for seafood, you can head to the Michelin-starred sushi restaurant.<\/p>\n<p>But when you&rsquo;re tired of the sushi and you&rsquo;re craving a steak, there&rsquo;s a world-class grill next door.<\/p>\n<p>Over the years, I&rsquo;ve traded around fixed-income products, stocks, options, commodities, cryptocurrencies, and fiat currencies &ndash; otherwise known as foreign exchange.<\/p>\n<p>It&rsquo;s this last asset class that I&rsquo;m interested in right now&hellip; it&rsquo;s the hot restaurant that everyone&rsquo;s trying to get a reservation at.<\/p>\n<p>For a long time, foreign exchange trading (also called Forex or FX) has been quiet.<\/p>\n<p>Volatility largely dropped off, and most traders would&rsquo;ve been better off sticking to other markets like equities.<\/p>\n<p>This has been especially true over the second half of 2020 and most of 2021.<\/p>\n<p>Everyone wanted to cash in on the &ldquo;Everything Bubble.&rdquo;<\/p>\n<p>But now that the bubble has popped, it&rsquo;s a trader&rsquo;s market once again. And one of the best trading markets right now is in FX.<\/p>\n<table bgcolor=\"#eeeeee\" border=\"0\" cellpadding=\"10\" cellspacing=\"0\" width=\"100%\" style=\"border: 1px solid #D7D7D7; margin-bottom:20px;\">\n<tbody>\n<tr>\n<td style=\"padding-left: 15px;padding-right: 15px; padding-top: 15px; font-family: Arial,sans-serif;font-size:17px; line-height:24px;\">\n<p align=\"center\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener\">click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In 2018, the U.S. Dollar Currency Index (DXY) had a net gain of just over 4%. Currently, the DXY is up almost 19%.<\/p>\n<p>That&rsquo;s a huge difference in a short time, and FX traders are loving the increased volatility. Especially because FX is traditionally traded on leverage.<\/p>\n<p>The exchange rate fluctuations between different currencies tends to be quite small relative to the moves you might be used to seeing in growth stocks or cryptocurrencies.<\/p>\n<p>For example, a 2% intra-day move in a currency pair would be an exciting event. On the other hand, a 2% move in a stock like Tesla (TSLA) wouldn&rsquo;t be an uncommon occurrence.<\/p>\n<p>As a result, FX brokers extend considerable leverage to their clients. In the U.S., many brokers will offer the maximum 50:1 leverage limit.<\/p>\n<p>Meaning that even with a relatively small account of $1,000, you can theoretically control up to $50,000 at a time.<\/p>\n<p>Of course, leverage is a double-edged sword. While it can certainly magnify the gains, it can also make losses even more painful.<\/p>\n<p>Keep in mind, the FX market is the most widely traded marketplace in the world&hellip;<\/p>\n<p>The daily volumes that are transacted in FX far outweigh what&rsquo;s going on in the stock market.<\/p>\n<p>It&rsquo;s estimated that over $6.6 trillion flows through the global FX market every day. That&rsquo;s compared to a relatively meager estimated $200 billion a day in the U.S. stock market.<\/p>\n<p>All that liquidity means it&rsquo;s effortless to get in and out of your positions.<\/p>\n<p>It also means that trading spreads tend to be very tight, making it easy to get a good price from your broker on most trades.<\/p>\n<p>And because FX trading takes place around the world, it&rsquo;s a true 24-hour market that&rsquo;s open five and a half days a week.<\/p>\n<p>The FX market opens on Sunday at 5 p.m. ET and closes on Friday at 5 p.m. ET.<\/p>\n<p>This is great for those that feel pressured for time to trade during the regular stock market session.<\/p>\n<p>Over the next few weeks, I&rsquo;ll be writing more about the features of FX as an asset class and why it would be a big mistake for traders to leave this market off their watchlist.<\/p>\n<p>Happy trading,<\/p>\n<p>Imre Gams<br \/>Analyst, <em>Market Minute<\/em><\/p>\n<p><!-- MAILBAG BEGIN --><\/p>\n<h2 style=\"text-align:center\"><strong>Reader Mailbag<\/strong><\/h2>\n<p>Have you ever traded in the FX market before? If so, what was your experience?<\/p>\n<p>Let us know your thoughts &ndash; and any questions you have &ndash; at <a href=\"mailto:feedback@jeffclarktrader.com\">feedback@jeffclarktrader.com<\/a>.<\/p>\n<p><!-- MAILBAG END --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>These transactions far outweigh what\u2019s going on in the stock market\u2026<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-19896","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19896"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19896\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19896"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19896"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19896"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19896"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}