Daniel Kibel, director and founder of online forex trading and investment company CM Trading, envisages a number of interesting and exciting changes for traders and for the markets in general. While the same cannot be said for the political playground, the world of forex trading is buoyant, filled with possibilities and with new technologies playing a vital role in the way we trade, the trading world could be your golden egg.
Kibel believes the following are the trends to look out for as we approach the middle of what has been a tumultuous year thus far:
What are the key trends in forex trading that you have identified moving forward in 2019?
The forex industry is leaning towards mobile trading, and mobile trading apps are popping up every day. With the increasing digitisation of the world, mobile apps are the most inevitable, natural trend, especially for populations who were born with a phone in hand, such as millennials. One can now trade via a mobile phone, a tablet, a computer. One can now trade with just about any electronic device, thereby opening the trading opportunities to more and more individuals. It's really trading made easy.
Social trading
One of the big trends in the forex industry which will continue to grow from strength to strength throughout the year is social trading. Forex social trading is a social online environment that offers interaction between active forex traders in real time. It is the sharing of knowledge with others and allows traders to trade online with the help of other, more experienced traders, while the more experienced traders can use social trading to improve their performance through interaction with their professional peers.
Clients of online trading brokers that offer this particular advanced trading platform, one in particular called CopyKat, enables clients to copy or mimic the moves of expert traders all over the world. This way, when these traders make money, the clients make money, even when they're beginners. It's as easy as can be, and it really works.
What challenges do you think exist in the forex trading industry, locally and internationally?
Being based in the UK, but with offices worldwide, we see many online trading companies stumble and fail. Many times it's because of poor standards. I believe that this year, in general, the online trading industry will be scrutinising and reviewing its service standards. Many players in the industry need to upgrade their level of service. With some brokers, clients deposit tens or hundreds of thousands of dollars, and yet have no access to a trading education or online or telephonic assistance, and clients are left to fend for themselves.
The trader, whether new or experienced, must choose a company that will provide these services, otherwise the consequences could be dire and the trader left feeling helpless.
Your game-changer trend?
Cleaning up the forex market
Online investment regulation worldwide, across Europe, North America, Japan and Africa, is expanding as more and more countries and organisations strive to efficiently control the booming online trading market. Going forward, stricter enforcement will continue to lead to greater accountability. I believe that this year is the year of change on that front.
We are eager for the market to be cleared of shady players who scare away clients and give the entire market a questionable reputation. We want all brokers to be transparent so that clients can be confident that they (and their investments) are in good hands.
What do you hope to see more of as the year progresses?
We're hoping that current global processes will bring about a variety of attractive trading opportunities. Economic tensions are on the verge of reaching a solution, including a foreseeable Brexit deal and looming trading arrangements between the US and its traditional trading partners. These are expected to offer peak trading momentum, which allow clients to profit, regardless of their investment size.
Going forward, we hope to see a rise in the global economy, with greater prosperity and wealth. We serve clients from all over the world, from developed to developing countries, and a good economy definitely benefits our sector.
What can we leave behind from previous years?
I believe uncertainties and volatility relating to crypto-currencies are gradually being resolved as governments implement more and more regulations. Values have decreased, but that's to be expected in the wave of the recent governmental supervision, and presents additional trading opportunities.
Another chapter that is coming to an end is the existence of bad players in the online market. They are being squeezed out as their reputations catch up with them.
No pressure, but with crypto-currencies having lost a lot of ground, particularly in the last year or so, do you have any ideas of what the next best trading opportunity would be?
I am always very wary when it comes to predictions. However, I will say that obviously, the world is changing and the future is our concern. We are no longer just looking at the 'right now'; we need to look at short- and long-term trading opportunities in companies and commodities that will be good for our future. There are those commodities that will always be in demand and will always be stable investments. Minerals, for example. Gold may be at a lower price (as we are having to dig deeper to find it, which obviously increases the costs), but there is still a lot of trader interest in platinum; palladium has been the talk of the trading world recently and iron ore is still a popular one.
Then there are sectors that sound futuristic, but are actually so close to being viable trades. I'm talking about things like artificial intelligence (AI), which includes Siri, Alexa and driverless cars, and things like geo engineering and green energy. Blockchain, which was originally built as a support structure to bitcoin, has seen an incredible surge in trading as we are finding out the many uses and the ways that blockchain can change lives.
Trading in socially responsible sectors and companies is becoming more and more popular, particularly with millennials and the Generation Xers. They see the future and want to have a viable part in it, and trading in these sectors gives them a great sense of being part of the change. Added to that, they have and understand all the technology at their fingertips which makes the trading experience quicker, easier and more fulfilling for these up-and-coming traders.
Don't think that I am leaving out those companies that have been around for generations; those with tried and tested track records. They may have seen some dips in the markets (most learn from those) but those worth their salt have maintained a strong presence and have continued to evolve to meet the needs of their consumers, thus keeping them relevant and definitively tradeable.
Having spoken at length about how all this technology has changed trading from when the New York Stock Exchange (NYSE) first opened its doors in 1817, there is still nothing like being able to call a human being who has YOUR best interests at heart. So, in a nutshell:
1. Set realistic goals and targets;
2. Choose a trading company that you can talk to and that you can trust;
3. Partner with a trading company that gives you the power through its technology;
4. Do your research;
5. Make use of all the expert data and advice from fellow traders and experts in the field;
6. Keep abreast of current affairs while still looking to future opportunities; and
7. Have fun! Start slow. A few well-placed short-term trades will whet your appetite. Once you've got the hand of it get the hang of it. You'll wonder why it took you so long to be part of the trader community!
Kibel concludes that 2019 will continue to be an interesting year with more regulations, more scrutiny but also safer and easier ways to become a forex trader. While the world changes and 2019 continues being a tumultuous one, with the right guidance, your forex trading need not be anything but exciting!
Anyone wanting to start trading can contact CM Trading on www.cmtrading.com or email info@cmtrading.com.
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