A rise in easy access online trading accounts has made it easier than ever for those interested in investing to delve into the world of trading. Furthermore, traders should expect big things in the coming year as inflation continues to rise and energy prices hit a new high. Analysts at BrokerChooser have shared their predictions for the coming year. Here’s what you can expect!
2022 online trading predictions
According to the experts at BrokerChooser, 2021 saw a huge increase in the number of online traders. This is mainly due to financial struggles that have caused many people to seek secondary sources of income.
The popularity of online trading isn’t expected to slow anytime soon. In fact, it is predicted that in 2022, even more people will enter the world of online trading. Therefore, 2022 could be a big year for the markets. Let’s take a look at three big predictions for the coming year.
1. The number of beginner traders will continue to rise
While restrictions in the UK may have eased, many people are still feeling the financial toll of Covid-19. As a result, the number of beginner traders is predicted to continue rising, with the popularity of mobile trading apps making this easier than ever.
For beginners, day trading and options trading are popular strategies. Therefore, markets could be exposed to an increasing volume of activity throughout the year. As well as this, around twice as many beginner investors are interested in cryptocurrencies as was recorded last year. EFTs are also a popular asset amongst new traders.
2. Interest rates will be a blessing for brokers!
In 2022, interest rates are expected to rise further. This will come as a blessing for brokers who will be able to profit from the rising costs of inflation. Furthermore, retail trading is predicted to remain at an elevated level. As a result, 2022 could provide great opportunities for brokers to profit from traders, who are becoming increasingly wary of inflation.
3. Options trading will drive the stock market
Options trading uses contracts to buy and sell assets at a predetermined price. Consequently, when the price moves to the agreed value, traders are able to buy the underlying asset. If the price point is not hit, the options contract will simply expire.
Options trading is a popular strategy for beginners because there is no obligation to buy. As a result, the trading strategy has soared in popularity over the last few years, causing explosive growth in the market. This is expected to continue as beginner trading levels remain high.
How to start online trading in 2022
Trading involves buying and selling underlying assets in order to profit from changes in value. Traders typically use market analysis, financial news and predetermined strategies to place and hold trades over a certain period of time.
Therefore, if you have time available to learn trading strategies, online trading could be an excellent way to make some extra cash. However, it’s important to remember that any kind of trading puts your capital at risk and profits are never guaranteed. In addition, the market could turn at any time, leaving you at a loss.
If you do want to get into the world of online trading, enrolling in a reputable course or seeking the advice of a professional could help. It is also a good idea to practice trading with a demo account before putting any real money at stake.
If you’re unsure, take a look at our top-rated trading accounts for 2022. If you’re trading in the UK, make sure that the broker you use is FCA approved to avoid any legal complications further down the line. As well as this, it’s a good idea to be aware of key beginner trading mistakes to ensure that you are fully prepared for the markets.
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About the author
Ruby is a freelance writer who enjoys writing about all things personal finance. After embarking on her own side hustle journey three years ago, Ruby is passionate about helping others to learn about the ins and outs of persona… Read More
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