What are the trading trends in 2021

What are the trading trends to follow in 2021

Trading the financial markets comes with both the reward and the risk. The important part of becoming a consistently profitable trader is identifying all the major happening in the market. The traders who are flexible in their approach take their place in the small category of 10% winners. The year 2021 has been great for most of the markets. We have seen a good amount of volatility and liquidity. Top investors are looking out for potential buy opportunities in the S&P500 and possible currencies. Here we look at the top trading trends for 2021.

Various forms of trading trends in 2021

Various sets of instruments have shown certain outcomes depending on the fundamental factors. Let us discuss the trends we have seen and are currently running:

  • Forex. The US Dollar index, which tracks the greenback’s performance against other major currencies, has seen a sideways approach. Using the charts, we can see it took a fall during the pandemic and is heading for a slight recovery. Xtrade- Forex Trading has some of the best quotes in the market and unique features in the platform to cater needs of both beginners and professionals.

trading trends forex 2021

The daily chart on the US Dollar index shows good support at around 90 and resistance present at 93.5. If the resistance breaks, we might see a good move to the upside.

  • Stocks. The stock market is witnessing new highs for the year 2021, and it is possible it will continue to move up for the fourth quarter. Most of the investors suggest that traders should look for active buy opportunities in the S&P 500.

The S&P 500 chart, which shows the combined activity of the top 500 companies in America, depicts a good uptrend for 2021.

  • Cryptocurrencies. With bitcoin reaching new highs and investments coming from billionaires, the cryptocurrency market is also rising. Mining is becoming more prevalent amongst traders. We can see a continuation in the strong uptrend for Q4.

Several up and downtrends on bitcoin, with the market remaining bullish for most of 2021. The crypto has generally been volatile.

Futures. Trading commodities futures is in the general favour of traders who want to benefit from inflation. There is a mixed concept about the pandemic as new strains are discovered. In such an environment, the futures market is best for those looking to have a diversified portfolio.

Other developments in trading

A few other trends have recently evolved in the past couple of years and have reached new heights in 2021.

Online prop firms have come to the surface offering capital to profitable traders. To get inside, traders have to pass their challenge, which comes with certain restrictions. After doing so, the company offers them a live account for trading. The profits are split at the end of the month.

Traders are actively seen hunting for robots that can help them pass the challenge presented by prop firms. New algorithms are being developed that can trade the markets on auto mode. Traders have to be careful as most expert advisors work only for a short duration and fail for the long term.

Marketing of finance products through social media has been on the rise to attract new traders and sell algorithms.

Brokers have been introducing new and better features in their infrastructure and trading platforms. Execution speed and spreads are improved to offer more benefits to traders. Investing with Xtrade’s platform is quite easy as traders can signup, deposit, and start trading within a few minutes.  The company offers quick and easy support for traders who encounter any problem while trading.

Traders must remain cautious of the volatility, which can spike up and down across all the markets as we near the end of the pandemic. Using proper risk management, it is possible to maintain low drawdown across portfolios.