Last Updated on November 5, 2022 by Rajeev Bagra
Have a broad-based understanding of all the available trading and investment options. Refer this by Investopedia to know the difference between trading and investing in financial markets. Also know these three which are common to all financial trading, be it share trading (also called stock trading), forex trading, or commodities trading:
- Difference between cash or spot market and future market.
- Contract for Differences (CFD) Definition: Uses and Examples: Difference between CFD and future market: “Futures contracts are standardized agreements or contracts with obligations to buy or sell a particular asset at a preset price with a future expiration date. Although CFDs allow investors to trade the price movements of futures, they are not futures contracts by themselves. CFDs do not have expiration dates containing preset prices but trade like other securities with buy and sell prices.”
- Options vs. Futures: What’s the Difference?
I am choosing services by BlackBull Markets for the below trading list.
- Forex: Global market for the trading of currencies. Refer Foreign exchange market by Wikipedia. Know more here and start trading currency pairs such as EUR/USD, GBP/USD with a demo/live account with BlackBull Markets.
- CFD (Contract for Difference): “CFD are agreements between a buyer and a seller that stipulates that one needs to pay the other the difference between the current price of an asset and the price at the time the contract was entered into. CFD’s allow investors the opportunity to trade assets without having to own the underlying asset.” Also, an important thing to understand is dividend adjustment. Refer Index and Shares by BlackBull Markets to know more and start trading CFDs that can be 2000+ popular Stocks, including Tesla, Apple, Amazon, Netflix, and Facebook. Or trade indices from major global exchanges, including the Nasdaq100, S&P500, Footsie100, ASX200 and DAX30. Not sure about the difference between stocks and indices? Refer this by Capital.com: Stocks vs Index trading: What’s the difference?
- Commodities: “Commodities are primary resources which are frequently used in industry, production, foodstuff and general daily consumption and are affected by different factors to that of other asset classes”. Refer Commodities by BlackBull Markets to know more and start trading commodities including gold, silver, crude oil, natural gas, cocoa, soybean, wheat, sugar, corn, cotton, and coffee.
- Precious Metals: “A precious metal is a rare naturally occurring metallic chemical element of high economic value. Precious metals are often referred to as the ultimate safe-haven assets during the times of market turmoil and high volatility. Because of this a lot of experienced investors hold at least some part of their portfolio in precious metals.” Refer Precious Metals by BlackBull Markets to know more and start trading Gold Spot, Gold Futures, Silver Spot, Silver Futures. Precious metals also come under commodities and so there is an overlap.
- Energy: “Energy commodities are physical stores of energy such as Crude oil and Natural Gas. These commodities are consumed in the production and supply of all other commodities and virtually all other economic activity. Energy commodities are essential to modern economies and are affected by a variety of factors including significant geopolitical events.” Refer Energy by BlackBull Markets) to know more and start trading Crude Oil Brent Cash, Crude Oil Brent Futures. Energy also comes under commodities and so there is an overlap.
- Share Trading or Stock Trading: What Is a Stock Trader by Investopedia? With BlackBull Markets, get access to 80+ global markets and 26,000+ shares, all from one easy, retail-accessible platform.
Add to it more trading opportunities with cryptocurrencies (not provided by BlackBull Traders). What I mean to say is I have included BlackBull Traders to ease my list-building exercise of trading/investing options.
There is perhaps no thin line of difference between trading and investing. As an individual, you might be doing intraday trading while also holding tax saving mutual funds (investment) with locking period of 3 years.
To get an overall idea of prevailing economic conditions and predict future trends, The Economist might be one of the favorite news magazines to subscribe to.
Next, narrow down to other news/information/research resources.
There is a world of buying/selling domain names (digital assets) on marketplaces like Sedo, Afternic, and Flippa. Flippa publishes blogs, newsletters, podcasts in addition to maintaining Flippa’s Alternative Investment Community, Humans of Flippa, Newsroom, and Events section.
For stock trading and investment in Indian stocks, moneycontrol.com can provide breaking news with in-depth charts and reports by experts. You might like TradingView (one of the partners of BlackBull Markets broker) if you are open to global stocks in addition to Indian stocks. For crypto, you might want to follow investment-mastery.com as part of learning thoroughly about the opportunities in cryptocurrencies.