Best Market to Trade vs Trade in Any Market

BY MARCELO ALVARENGA

There are a lot of markets available to trade. We can trade stocks, futures, options, forex, cryptocurrency. And we also have many options within the markets. We can trade tech stocks, penny stocks, ETFs, and large caps in stocks. In the futures, we can trade commodities, bonds, indices. There are lots and lots of options available. 

So, what is the best market to trade then? Well, this specific question will be left to another article. I’ll touch on a critical point that is often misunderstood in this one.

One of the most critical aspects of developing as a successful traders is understanding the difference between trading in any market versus becoming a specialist in a specific market. Despite being something fundamental, the truth is that few know that there is a vast difference.

To illustrate this concept, before we get into more specific trading issues, let’s think about an engineer’s profession. Let’s imagine someone who has graduated in Engineering. Well, he can specialize in different areas. For example: 

1. Civil Engineer
2. Electrical Engineer
3. Computer Engineer
4. Mechanical Engineer

However, to specialize and then make a living in one of the above areas, every engineer, without exception, needed to be graduated as Engineer, correct? Would it be possible to skip steps in the education process and just become a Civil Engineer without knowing the basics of Engineering itself? Not really. 

The same logic goes for Medicine, Law, and many other professions. 

I believe that trading the same logic is valid. The education sequence for correct career development as a trader is to start with a trading foundation, regardless of which market we will trade afterward.

In other words, a solid trader acquires good knowledge and knows how to think and act like a professional. They understand the fundamentals and principles of life as a trader. Knows the financial market, the risks, and opportunities. He knows how to read the market and has his strategies with an edge. A solid trader knows how to deal with emotions and can execute under pressure. Can develop good habits, have good discipline, and master risk management.

Someone with such a solid foundation can trade in any market, right? And that is precisely the point. It is straightforward to pick the best market to trade if a trader has the skills to trade in any market. 

Important to note that each market has its characteristics. The market profile is super important, and we must understand the risks and opportunities of the market that we trade most often. For example, it is essential to understand all associated risks in stock or future options.

However, one of the biggest mistakes a trader can make in his career is specializing in a market before becoming a solid trader who can trade in any market. Reversing the order can cause a lot of problems in the development process.

Many beginners make this mistake. They buy courses for Forex, Bitcoin, Binary Options, Stocks, or Futures but have difficulty trading successfully. Of course, the reasons behind the failure are diverse, but in most of my work with traders worldwide, a common problem I encountered is that these traders did not correctly complete a trading foundation.

If you don’t know to trade in any market, if your trading foundation is not solid, then there’s no point in choosing the best market to trade.


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