Four Reasons Why 2020 Could be a Great Year for Traders
This is not your typical list of “four events that will change the world of finances in 2020”, because those lists tend to be gibberish and mostly written as clickbait. This is also not a list of promises and guarantees on what you should be trading during the coming 12 months.
However, as trading experts, we want to share a few ideas on what we believe might have the potential of creating lots of trading opportunities during the coming year. Consider it four situations that we, ourselves, are keeping our eyes on as we move into the new year.
Also, keep in mind that this is written with day and swing traders in mind and not necessarily for long-term investors.
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1. The Cryptocurrency Market is Moving Again
Regardless of what you think of the cryptocurrency market, there is no denying that it has provided a lot of great investment and trading opportunities over the past 6-7 years.
Now, unless you’re a dedicated short trader, the market has been quite slow and unimpressive since the massive bull run in 2017, but that might be about to change.
In the past couple of weeks, we have seen exciting developments on the market and it seems like we reached a bottom when Bitcoin hit $6,000 a few months ago. In fact, Bitcoin (which is usually a good indicator for the rest of the market), hasn’t looked this stable in quite some time.
Add to that all the blockchain development that’s planned for the year, and we have a good chance of experiencing a new cryptocurrency bull run in 2020.
2. The Stock Market Has Reached a Crossroad
The global stock market is, in many ways, the opposite to the cryptocurrency market. New records have been set on exchanges all over the world and it almost feels like there is nothing that can stop the positive growth we’ve seen.
But don’t fool yourself. Sooner or later, the stock market will hit a ceiling. And according to most experts, that will probably happen sooner rather than later.
The goal for us traders is to be prepared when that happens so that we can benefit from the potential instability ahead of us. Short trading struggling stocks is a well-known recipe for success, but it requires awareness and guts.
At the same time, if you’ve invested in stocks, now is probably the time to start coming up with a plan on what to do when the market turns. Where should you place your funds? Is gold the solution as it often is or do you dare take the risk and move your funds into the cryptocurrency market?
3. We’re On the Verge of a Global Political Meltdown
Let’s face it, with the latest tension between the U.S. and both Venezuela and Iran, chances are that we’re in for a massive political meltdown on a global scale. And since oil is playing a leading role in the growing tension, we can expect the prices to skyrocket as we move forward.
In fact, most political and economic experts agree that whatever happens in these two situations, the price of oil will be greatly affected. In turn, that will create countless trading opportunities for anyone with an interest in commodities.
4. Innovation Will Create New Opportunities
We realize that this sounds vague, but we still think it’s worth mentioning. Regardless of the potential stock market ceiling and then global tensions, 2020 is set to be a year of innovation.
Both the tech industry and the clean energy market will most likely experience development as we’ve never seen it before. Better yet, development in these two markets will happen on a global scale which, in turn, could lead to incredible investment and trading opportunities everywhere.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.