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What assets should you focus on this year?

When deciding which assets to trade, you should always consider to liquidity and trading volume, to ensure that your opportunities to trade are not limited. This is especially true if you are a day trader or scalper, as your goal is to make gains in very short periods of time.

With that in mind, we’ve selected four promising assets to focus on this year. Monitoring their price movements will allow you to identity the best moment to open – and close – your trading positions.

Facebook

Facebook has had to overcome numerous challenges since last year, including scandals over security vulnerabilities which allowed other companies to access members’  personal data for political purposes, as well as ongoing allegations of ideological bias. Most recently, the New Zealand terrorist attack was broadcast live on Facebook, raising serious questions about whether the platform does more harm than good.

Despite Facebook’s troubles, it seems that its stock price is quite resilient, suggesting that the company remains on track to achieve further growth and increased profitability.

Bloomberg declared last December that several sources confirmed that Facebook was working on a virtual currency for global payments. Facebook Coin could generate USD 19 billion by 2021, according to Ross Sandler from Barclays, which should provide significant support to the company’s  share price.

Bitcoin

Bitcoin was the world’s first cryptocurrency, launched in 2009 as an alternative to the current monetary and financial system. The Bitcoin network offers a more transparent currency that is not controlled by any government or central bank.

Ten years after its creation, Bitcoin remains the most important virtual currency in terms of market capitalization. Many online stores now accept payments in Bitcoins and some countries – including Japan – have even recognized it as legal tender.

The high volatility of cryptos, and the evergreen appeal of the concept, continues to attract new traders, and Bitcoin’s current low value could represent an interesting investment opportunity.

GBP/EUR

Investors seem to be supporting sterling following last week’s events in Westminster, with the UK parliament again rejecting Prime Minister May’s Brexit withdrawal agreement. The weakened government is now ready to formally request an extension to  article 50, beyond the March 29th Brexit deadline.

Of course, there is still a possibility of a “hard” Brexit if the European Union does not approve this request, since parliament’s vote to take “no deal” off the table is not legally binding. Many analysts however, regard this scenario as unlikely, a view which is supporting the pound. BNP Paribas economists commented on last week’s decisions, saying that “the market has already shifted significantly to price out a no-deal Brexit”.

The GBP  posted its largest weekly gains of the year against the USD last week, but the roller coaster ride for sterling might not be over, with further twists and turns in the Brexit saga almost certain to  impact the GBP/EUR.

Oil

Many investors have increased their bullish bets on West Texas Intermediate and Brent crude prices, which just reached their highest levels since last October. This is mostly due to expectations surrounding the upcoming meeting of top crude exporters that should take place on March 23-24 in Azerbaijan.

Investors are expecting OPEC to keep supporting oil prices, with its members maintaining their commitment to cutting output, while sanctions on Venezuela and Iran have also helped reduce the global oil supply. Further price movements can therefore be expected, which should offer excellent trading opportunities.

Reliable online brokers enable you to trade a wide range of financial instruments to take advantage of rising as well as falling markets. To select the right assets when trading the markets, you need to be sure you’re doing so according to your trading style and level of risk tolerance.

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Karen Jean

Karen Jean