It is common for an aspiring market participant to wonder about which market they should commit themselves to. Many may argue and accord several propositions concerning the subject matter. The majority of which would tell you to start with the local market. On the other hand, there are a minority of individuals who would advise you to start with the Global Markets, whether it is the US Stock Market, Forex, Commodities, or Cryptocurrency.
Trading the financial markets, as described by Mark Douglas, is an activity where an individual is exposed to an endless stream of opportunities. In hindsight, the financial markets do not sleep, given that there are a multitude of stock markets across the globe, operating in different time zones, and the forex and commodities market that operate almost 24/5, and the cryptocurrency market that functions 24/7.
There are trading opportunities every day, even if you would only trade the $PSEi. As of this writing, the local market operates for three and a half hours. Although, it is a limiting belief that trading merely one market is enough to fully amass the limitless series of opportunities that the whole financial markets are offering. The capability to be able to trade on the short side, along with the option to execute a trade using leverage and margin are aspects that the local market does not have yet (although there are limited brokers in the Philippines who offer margin).
Some started trading the Global markets without participating in our local market, and vice versa. The most important factor here is to choose an environment that presents more opportunities than the latter. There are cases when a trader performs better in global markets in comparison to the local market, and vice versa. To each their own, as they say.
It doesn’t matter what market you want to commit to if you have studied and assessed what you are getting into. An aspiring market participant should be aware of the differences across the trading landscape. This is to ensure that the novice trader fully understands the risks involved for every available asset class.
If you want to learn more about the differences between the Global and Local market, you may check out the Going Global InvestaDaily Article series.
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