Remember the year 2020? Everyone expected a strong economic recovery and a romantic summer in 2021, thanks to COVID-19 vaccinations. Some even predicted that the pandemic would be over soon. After that came the Delta and Omicron versions. The pandemic is still going strong, sending mixed messages that make it harder for the world to get better.
According to information gathered from Forbes, the party lasted throughout 2021 in the stock market. Even huge inflation data couldn’t damper the animal spirits in 2021, as the total return on the S&P 500 was above 27%. There are hints that the final call may be approaching, but other signs suggest that investors will still be able to make money this year. Read on to discover the top 4 trading trends and opportunities to keep an eye on in 2022.
Trading apps and social-trading platforms have increased in popularity
Various trading apps are currently available to assist novices in getting started with Forex trading during these extremely turbulent market cycles. These tools will help new traders stick to a single trading strategy without risking more money than necessary.
As early as 2019, MIT professors investigated the success of copy trading, and their papers concluded that copy traders outperform individual traders by 6–10%. Since 2020, copy-trading has exploded in popularity, with different platforms cropping up to support it. Social trading platforms will be more popular in 2022.
As you plan to take advantage of the trading opportunities in 2022, it’s important to choose the right trading platform. A reliable, safe, and regulated platform, like AvaTrade, provides traders with the resources they need to get the best returns from their investments.
Gold may be the most helpful asset
Due to low-interest rates and financial uncertainty following the COVID-19 market crisis, gold entered a bull market in 2020, rising from slightly around £36 per gram to well above £45. Gold could reach new highs in 2022 if there is still a lot of financial instability, which is likely because the pandemic has stopped the growth of the economy.
Gold is a solid investment in the appropriate circumstances. Effective investment requires knowing when to choose an asset. As a result, while gold can be a good investment, it is highly dependent on your situation and the asset’s suitability for your portfolio.
Cloud-based Forex platforms could become the standard soon
Because they offer lower prices, flexible design, high dependability, and exceptionally low latency, cloud-based forex trading systems are poised to become the new standard. This is the best way to do things in a market where rules, products, and market conditions change all the time.
2022 may be difficult for cryptocurrency
The total market capitalization of cryptocurrencies has dropped below $2 trillion, with many major coins losing 15% or more of their value. Luna is not left out as it lost about 94% of its market share.
Some say we’re in the midst of a bear market. Others claim that this is typical of cryptocurrencies, and that volatility is an inherent part of cryptocurrency investing. What is certain is that the crypto market will face numerous uncertainties this year, ranging from increased regulation to the impact of the Federal Reserve’s anti-inflationary policies.
It’s understandable to want to invest in cryptocurrencies, especially after some of them have made incredible returns this year. However, don’t let the advantages distract you from the dangers. Make sure you’re only investing money you can afford to lose and that bitcoin is a modest part of your entire portfolio.
It’s important to keep in mind that the direction of any cryptocurrency or currency pair can be changed by market movers and shakers. Stay up to date on market news, trends, and developments to stay ahead of the competition.