Traders use different strategies to predict the future market value of an asset and make money from it.

One possible strategy is to follow the news. Usually, novice traders use this strategy.

More experienced traders take into account a number of factors, use indicators and know how to predict trends.

However, even professionals trade with losing trades. Fear, hesitation, lack of patience or the desire to make more money can cause losses for experienced traders. Simple risk management rules can help maintain sanity.

To predict the future market value of assets and make money on it, traders use different strategies.

One of the possible strategies is to work with news. As a rule, it is chosen by beginners.

Advanced traders take into account many factors, use indicators, know how to predict trends.

However, even professionals have losing trades. Fear, uncertainty, lack of patience or the desire to earn more bring losses even to experienced traders. Simple rules of risk management help to keep emotions under control.

Features of trading stocks and indices are similar. Shares are securities that give the owner the right to receive dividends and a part of the company’s property if the company is sold. And the indices reflect the state of the securities market.

Compared to currency pairs, stocks and indices have less risk due to lower rates of volatility. They are better suited for longer-term trades and long-term investments.

Commodities include oil, gas and metals. As a rule, commodities show high volatility and give a large number of signals for intraday trades.

Crypto Assets are digital financial instruments. They remain the most unpredictable and are high risk assets. They have an extremely high volatility rating and can move in one direction for an extended period of time.

Currency pairs are the price ratio of the currencies of two countries. This ratio shows how many monetary units of one currency are worth a unit of another currency.

Currency pairs are the most popular assets because of the high volatility rate and as they are easier to analyze. As a rule, 75% of market operations are made in pairs — EUR/USD, GBP/USD, USD/JPY, CHF/USD.

IAssets in the trading world are a commodity. These include money, securities, raw materials, indices and digital currencies. The price of an asset is affected by the volume of trades that are made for the asset. The more often an asset is bought, the higher the price becomes. If the asset starts to sell actively, the price falls. The fluctuation in the value of an asset per unit of time is called the rate of volatility.

The main  trader`s goal is not to buy a commodity, but to make a profit due to the difference between the purchase price and sale price. So, you can earn when the value of the asset rises and when it falls. There are 5 main types of assets: currency pairs, stocks, indices, commodities and crypto currencies.

Depending on the trading style, traders are divided into bulls and bears.

Bulls buy assets with hopes of future gains. The main task of the bull is to buy cheap, and later sell more expensively. When the amount of people who want to buy an asset becomes a lot, the price of the asset increases. This trend is called "bullish" - by analogy with the bull, which throws the victim up with its horns.

Bears sell assets with the hope that they will buy them back in the future for less. They encourage the price to fall and buy the asset back before the price begins to rise and the process begins again. Profit is determined by subtracting the lower purchase price from the higher sale price.

If bears become more active, the price of the asset begins to fall. This trend is called "bearish" - it’s an analogy based on the way a bear attacks by swiping its paw from high to low.

The confrontation between bulls and bears on any asset occurs every second. This change is also reflected in the chart.

The foreign exchange market is available to traders around the world 24 hours a day. This is due to the fact that trading participants live in different time zones. When traders finish trading in one time zone, the trading session only begins on the other side of the earth. Except for the days off: Saturdays, Sundays, and national holidays when there is no trading on the world’s exchanges. However, crypto assets are available for trading 24 hours a day, seven days a week.

Some assets, such as stocks and ETFs, are only available for trading at a certain period of the day. This feature is explained by the working hours of the exchanges where these instruments are traded.

Taking into account the trading session you are working in is essential for your trading to be successful. There are four sessions — European, North American, Asian, and Pacific — and each has its own characteristics. 

The European session begins at 07:00 and concludes at 16:00 GMT. This session will have the most Forex transactions of all the sessions.

Participating in the European session is suitable for those who prefer active trading. This situation is ideal for high profits, but remember — it is also correlates with high risk.

The American session begins at 12:00 and concludes at 21:00 GMT. The activities during the American session are comparable to the activities during the European session. It is believed that it is currently the best time to trade using the scalping method.

The peculiarity of scalping is that the conclusion of short trades is reduced to just few minutes. Usually, the result is the opening of a large number of trades, each of them earning a small profit. If this trading style suits you, then this is the choice for you.

The Asian session opens at 23:00 and closes at 08:00 GMT. It is characterized by large trading volumes. Remember: the entire trading day depends on how things develop during the Asian session.

The Pacific session starts at 21:00 and ends at 06:00 GMT.

This time is considered the calmest as the value of assets fluctuates in a more narrow price range.

The most active trading is always during the first three hours of the session. Try to get any assets you want at this time.

But if you prefer short-time trading, you can find lots of profitable trade entry points even if the market is flat.

To predict the price of an asset and to get the maximum profit, traders use trading strategies. The strategy includes an investment plan, risk factors and time characteristics.

There are many trading strategies, but they can be divided into two types, which differ in the approach to forecasting the price of the asset. It can be technical or fundamental analysis.

In the case of strategies based on technical analysis, the trader identifies market patterns. For this purpose, graphical constructions, figures and indicators of technical analysis, as well as candlestick patterns are used. Such strategies usually imply strict rules for opening and closing trades, setting limits on loss and profit (stop loss and take profit orders).

Unlike technical analysis, fundamental analysis is carried out "manually". The trader develops their own rules and criteria for the selection of transactions, and makes a decision based on the analysis of market mechanisms, the exchange rate of national currencies, economic news, revenue growth and profitability of an asset. This method of analysis is used by more experienced players.

Trading in financial markets without strategy is a blind game: today is lucky, tomorrow is not. Most traders who don't have a specific plan of action are abandoning trading after a few failed trades — they just don't understand how to make a profit.

Without a system with clear rules for entering and exiting a trade, a trader can easily make an irrational decision. Market news, tips, friends and experts, even the phase of the moon — yes, there are studies that link the position of the Moon relative to the Earth with the cycles of movement of assets - can cause the trader to make mistakes or to start too many transactions.

The strategy removes emotions from trading, for example, greed, because of which traders begin to spend too much money or open more positions than usual. Changes in the market can cause panic, and in this case, the trader should have a ready plan of action.

In addition, the use of the strategy helps to measure and improve their performance. If trading is chaotic, there is a risk of making the same mistakes. Therefore, it is important to collect and analyze the statistics of the trading plan in order to improve it and increase profits.

It is worth noting that you do not need to rely entirely on trading strategies — it is always important to check the information. The strategy may work well in the theory based on the past market data, but it does not guarantee success in real time.