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Best Markets To Trade In 2021: All You Need To Know!

Last Updated November 20th 2020

The best markets to trade in 2021 could hold some surprises

What are the best markets to trade in 2021? Will 2021 be a good year for trading at all? Will the key markets to trade in 2021 be worth it? What should I be trading in 2021? Let’s take a look!

2020 has been a pretty insane year so far. Pandemic, protests, lockdowns and working from home, fear of economic meltdown, Tiger King, the acceleration of climate change, and a US election in the mists. 

But what does 2021 hold? Promises of hope or more of the same? 

Could it be a year of hospitality and economic growth or could it be another year where we continue to find ourselves further divided and on the edge of an economic disaster? 

Pardon the dramatics! It’s been tough on us all!

Whatever the situation, there is always a way to skirt danger and find a silver lining that could get you closer to your fortune and keep you out of the crosshairs of danger.

Contents:

The Best Markets to Trade in 2021

1. Trading Forex in 2021

2. Trading Cryptocurrency in 2021

3. Trading Stocks in 2021

4. Trading Commodities in 2021

Key economic events of 2021

Is economic recovery from the coronavirus likely in 2021?

Learn to trade the best markets of 2021 before it starts!

FAQs about the key markets to trade in 2021

Key points

In this article, we’ll look at the best markets to trade in 2021, what will likely affect them and how to make the best out of them.

Want to learn how to trade the best markets of 2021 like a pro? Take one of our trading courses! 

The Best Markets to Trade in 2021

Here are Trading Education’s best markets to trade in 2021!

Trading Forex in 2021

forex trading, best markets to trade

The forex market is one of the key markets to trade in 2021, you can’t escape news about this $5 trillion a day giant!

If you’re planning on trading forex in 2021, there are many things you need to keep your eyes peeled for, most of which are news events, announcements on GDP, inflation, employment, etc.

But on a more serious note, there are some huge developments that have been brewing over the years and have drifted towards tipping point in 2020. 

Let’s look at some of the most important currencies people will be trading in 2021.

The US Dollar

As you may or may not know, the US dollar is involved in 88% of all forex trades, whether it’s being bought or sold. All major currency pairs include the US dollar on one side and one of the minor currencies on the other.

The US dollar is the jewel that makes the centrepiece in the forex market’s crown. Its influence over the rest of the world makes the forex market one of the key markets to trade in 2021.

In fact, the US dollar is so important to the rest of the world, many countries keep the US dollar as a reserve currency locked away in case of an emergency

Because of this, it is crucial to watch the US economy, which can have a knock-on effect on the whole world economy.

Even forex trading pairs that don’t involve the US dollar can feel the pinch when something bad happens in the US. It’s like a wave that will eventually get you, no matter how far away you are from where it started. 

2021 has the potential to be a very rocky year for the US dollar depending on the US elections that will take place on the 3rd November 2020.

If Trump wins a second term, it will be very hard to predict what will happen as he is known to be a very unpredictable president; things could go smoothly for 2021 or they could easily go very sour.

If Biden wins, it could be very different and potentially be a lot more stable. But at this point, it is pure speculation, and no real promises can be made.

On top of that, the trade war between the US and China is likely to continue to affect the price of the US dollar. The likeness of this continuing throughout 2021 is particularly high if Trump is re-elected.

The Pound and the Euro

eur/gbp currency pair chart, best markets to trade

Forex traders in 2021 should continue to be cautious of the British pound as the relationship between the UK and EU continues to change.

Despite the two finalising their ‘divorce bill’, the UK appears to want to make changes after accepting the deal they negotiated.

That only served to anger the EU, who naturally doesn’t want to spend more time on a deal that’s already been four almost years in the making.

Further to that, the UK and the rest of Europe has been hit particularly hard by the coronavirus with Spain, Italy and France being some of the biggest sufferers from the entire pandemic, and all using the euro. 

It is also very likely that we haven’t seen the economic fallout from that yet.

The Australian and Canadian Dollar

As both Australia and Canada are both exporters of natural resources, traders need to watch these kinds of exports from these two countries. 

However, Canada is a lot more dependent on the US than Australia, as 75% of Canadian exports go to the US and 50% of imports are from the US, so the US dollar can have a big effect on the Canadian dollar.

Because of this, if there is indeed an economic crisis in the US, the Canadian dollar is also likely to suffer as well.

Australia is in a similar situation with China, as up to 30% of Australia’s exports go to China. If China’s economy suffers, the Australian dollar will too.

The Swiss franc depends on a strong EU

Switzerland has a very close relationship with the EU. Though to be fair, it doesn’t have much of a choice, it’s almost completely surrounded by the EU and Eurozone at every border (Germany, France, Italy, Austria), except with Liechtenstein, a tiny country which also uses the Swiss franc. 

And because of this, it’s not too surprising that the majority of Switzerland’s exports go to the EU, and so if there’s trouble with the euro, there will be trouble with the Swiss franc as well.

So, if there is indeed economic fallout in the EU over the coronavirus and souring relations with the UK, there will likely be an impact on the franc too.

And on another interesting thing to note, in September 2020, the Swiss had a referendum on whether or not to end free movement with the EU, which was rejected, signalling that the Swiss may move for closer relations with their neighbours in the years to come.

Big Changes in China

Outside the major and minor pairs, some important developments have been taking place in China.

Though not classed as a minor currency, the Hong Kong dollar is a trader’s favourite. But it looks like for the last six months it has almost flatlined, which potentially could be related to the disruption caused by the crackdown on pro-democracy protests.

In mainland China, the Chinese renminbi, also known as the yuan, may continue to emerge as a leader (it’s potentially a big development that may also be affecting cryptocurrency, more on that below!).

The Japanese yen, a minor currency, is perhaps feeling the most of the impact of an ever-growing China, the two being primary competitors in manufacturing.

Despite this, China typically wants to keep the renminbi cheap to help exports and undercut their competition.

Africa on the Rise

But it’s not all doom and gloom! In some parts of the world, the forex market started surging in 2020.

Forex trading increased enormously in Africa during 2020 and it is possible that that may continue into 2021

People have been talking about the emergence of Africa economically for a long time now and it may be finally starting to arrive.

As a result of this, we may see more activity around African currencies and brokers starting to offer more favourable terms for trading African currencies (all of which are regarded as exotics).

Are you ready to start trading Forex?

Further Reading:

8 Things Successful Forex Traders Won't Say

Is It Really Worth Becoming A Forex Trader

Forex Trading for Beginners

The Importance of Risk Management in Forex Trading

What Are The Most Volatile Currency Pairs

Trading Cryptocurrency in 2021

cryptocurrency trading, best markets to trade

The cryptocurrency market has risen to become one of the key markets to trade in 2021 and will likely continue to stay that way for the foreseeable future.

If you watch the cryptocurrency market enough, you will notice that things change very quickly (remember back when Litecoin was something new and ground-breaking?).

Today, there are approximately 8,000 cryptocurrencies all jostling to be No. 1, and most fade away just as quickly as they got our attention.

But there are some clear changes coming in the cryptocurrency market for 2021, as 2020 has already shown us.

Some coins that were popular not long ago are losing their shine and traders are moving away from them.

Newcomers: Crypto.com Coin and Chainlink

Two coins growing in popularity are Crypto.com coin and Chainlink. Aside from this change, the majority of well-known cryptocurrencies has stayed the same; Bitcoin and Ethereum are still the king and queen of the market.

Though, that said, Ripple, the next in line to the throne, has been kicked aside from the third spot to fourth by Tether, which has grown at a great velocity.

Potential Chinese Dominance?

And then there are far bigger events taking place; China’s grand entrance into cryptocurrency with a government-sanctioned crypto, DCEP, is continuing to gain attention

China is seeking to compete with the dominance of the US dollar by giving the yuan a technological advantage. They want to make the yuan more globally used and one way to do that is by turning it into a cryptocurrency.

They were also seeking to compete against the emergence of Facebook’s Libra, but with the loss of most of their partners, it may finally be declared a dead project in 2021.

But let’s get back to the ‘king’, Bitcoin.

Bitcoin Still No. 1?

bitcoin price chart, best markets to trade

Bitcoin had a very important year in 2020, it went through the ‘halving’, which is where the block reward for mining Bitcoin has again been halved (it happens every four years).

And typically, what happens in the year following a halving is the price shoots up very dramatically. 

The last time Bitcoin went through a halving was in 2016 and then in December 2017, we saw Bitcoin and many other cryptocurrencies reach their highest ever prices - Bitcoin almost reached $20,000 per coin!

And $20k is just a drop in the ocean to what some are predicting for 2021. For instance, Anthony “Pomp” Pompliano, who is the co-founder of Morgan Creek Digital Assets, also believes that Bitcoin could possibly reach $100,000 during 2021.

And it’s not just the Pomp dishing out that estimate, there are plenty of others as well.

Similar things should also be looked out for in Bitcoin Cash and Bitcoin SV, which, by the way, will likely continue their battle into 2021 as well.

Bitcoin reaching new heights will definitely make the cryptocurrency market the best market to trade in 2021, and will likely increase the price of a number of other altcoins.

But to change the topic once more, there is something of much bigger importance to mention, a scary word that threatens to cut apart the cryptocurrency market: Regulation.

Changes in Crypto Regulation on the Horizon?

Yes, regulation continues to be a touchy subject for many cryptocurrency traders and sadly it looks like 2021 will be another year of uncertainty as many politicians around the world seem to still be failing to understand what the technology can offer.

The worry is that if they do not educate themselves on the benefits of cryptocurrency, they are probably more likely to simply ban or illegalise cryptocurrencies, especially if they feel they are a threat to their government-sanctioned currency.

If this happens, the cryptocurrency market could go from a key market to trade in 2021 to non-existent.

Further Reading:

Top 10 Cryptocurrencies To Invest In 2021

How Much Will Bitcoin Be Worth In 2021 And Beyond?

Ripple Price Prediction

Cryptocurrencies To Buy, Watch And Avoid

Ethereum VS. Ripple

How To Trade Cryptocurrency with $100

Most Important Cryptocurrencies Other Than Bitcoin

Learn to trade cryptocurrency with our cryptocurrency trading course!

Trading Stocks in 2021

stock trading, best markets to trade

For sure the stocks market is going to be one of the best markets to trade in 2021.

But when you really look into all the different opportunities available to stocks traders, it can get quite overwhelming quite quickly. There are way more choices than the forex and cryptocurrency market.

It all depends on the type of company you want to invest in and your knowledge of that market; specifically, what gives their products value and what can take it away.

Tech companies have dominated the stock market for a long time now, and it is quite likely that the best stocks to trade in 2021 will be tech-related.

The likes of Tesla, Amazon, both tech companies in different fields have been growing tremendously in the last few years and look like they will continue to do so in 2021.

But that might not always be the case. 

Stocks Trading in 2021

When preparing for the 2021 stock market, it really helps to think about what stocks did particularly well during the pandemic of 2020 and perhaps one that is not surprising is Netflix because what else are people going to do when they are stuck at home for months at a time? 

Netflix had a great 2020 and will probably continue that trend into 2020, but stock traders need to really make sure they take a good look at the growing alternatives such as Hulu, HBO, Disney+.

That’s the trick to stocks trading in 2021; you need to keep an eye out for stocks that did better because of the pandemic and a safe distance from those that haven’t.

That said, stocks that usually do well will likely recover if they have had a hard 2020, and so 2021 could be a good moment to get your foot in the door.

Tesla Has Rivals Now

tesla  price chart, best markets to trade

In previous years, Tesla almost went unchallenged for a long time, with little competition in the sphere of electric cars.

These days there are starting to come to grips with potentially fierce competition from Nikola. Funnily enough, both companies taking their name from legendary inventor Nikola Tesla.

But Tesla also has other problems. Elon Musk continues to be an unpredictable person who could very easily make or break the company (he should probably stop using Twitter so much!).

Some of his outbursts have gotten him in deep trouble, the kind of trouble where you need to pay $20 million to the SEC (Securities and Exchange Commission).

Perhaps their biggest success is their downfall; they’ve made electric cars cool, and because of that, they’re no longer the only ones in the electric car industry. They may have paved the way for the popularity of electric cars, but they might not be the only ones there in the end.

It is very unlikely that people will lose interest in electric cars in the years to come, so getting involved now could turn out to be a great decision in the long run.

Amazon Versus Alibaba

Amazon is likely to continue growing throughout 2021 as it continues to plough forward to new heights making Jeff Bezos, the world’s richest man, richer than ever.

But, just like Tesla, Amazon also has rivals too, Alibaba, a Chinese ecommerce platform, is coming up close.

Both companies are on the rise and had a great 2020, which was likely helped by the coronavirus which prevented most retail shoppers from travelling to shopping centres and who preferred to order online as it was safer and more convenient.

But Amazon has some tricks up its sleeves, for starters, it’s not just an ecommerce platform, it’s a lot more, also specialising in cloud computing, with a branch of its company called Amazon Web Services (AWS). 

You may not know it, but a large chunk of the web is being hosted by AWS, in fact, Amazon controls up to 33% of the cloud computing market, which is a huge slice.

So, while Amazon may have some rivals appearing over the horizon, it still clearly has a very tight grip over ecommerce and the potential to expand into other industries. 

And to be fair, it is to be expected that a company like Amazon is going to have rivals. It is very possible for both Amazon and Ali Baba to grow simultaneously without engulfing the other.

Is Facebook Still the King of Social Media?

facebook price chart, best markets to trade

Facebook seems to be doing surprisingly well despite all the scandals in recent years and the trouble it continues to get into related to political campaigning and the spread of hate speech on their platform.

People forget that Facebook is actually pretty used to scandals and lacks any real competition. No other social media platform has the reach of Facebook, it’s presence is global, being the most popular platform in most countries and continents.

But interest in Facebook has been waning for some time now. 

While most people can forget and move on from scandals, others cannot, and there is some movement, particularly among young people, away from Facebook or at least they are not as engaged as they used to be, which could signal a movement away from the platform in the near future.

Elsewhere, Twitter has been picking up in value since the third quarter of 2020 and this could continue into 2021.

Snap, Pinterest and Zoom also represent interesting choices for investment in 2021, the latter of which has gained significant popularity due to the coronavirus as an alternative way to communicate with work colleagues and friends at a time when everyone is quarantining. 

Apple and Microsoft

You cannot ignore these giants; chances are you’re reading this article on either a Mac or a Microsoft computer.

The two companies are historically known to be great buys for the long-term. They’re both continuing to grow and have a habit of buying back stock.

An interesting point to note, Microsoft may have a slight edge over Apple in that it has gotten itself involved in cloud computing, attempting to take on AWS, Amazon’s cloud computing service we mentioned earlier.

Some Interesting Choices in Food and Beverage

Of course, though, it’s not all completely about tech companies. Here are two more we have our eyes on.

Luckin Coffee, a Chinese coffeehouse company founded in 2017, made waves in 2020 and now has over 4,500 stores and far exceeding the number of Starbucks outlets in China.

Lucking Coffee’s success has come quickly and if it is able to maintain this, it could be a very interesting stock for 2021

That said, in 2020 there was some controversy surrounding Luckin Coffee as it was uncovered that some of its profits were falsified.

Another interesting choice is Beyond Meat, an American company that specializes in plant-based meat substitutes

Though the company has been around for almost ten years, it really started to gain traction in 2020.

If the demand for vegan-friendly meat substitutes continues to rise, Beyond Meat will likely do well in 2021.

Keeping an eye out for interesting stocks like these will definitely make the stocks market one of the best markets to trade in 2021.

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Related: Best Shares to Buy NOW

Trading Commodities in 2021

commodities trading, best markets to trade

The commodities market will be one of the key markets to trade throughout 2021, but you’ll have to learn to sit on your hats throughout any potential craziness.

Could We See More Tension Over the Price of Oil?

Oil had a bit of a panic moment in March 2020 when Russia and Saudi Arabia triggered a price war over the price of oil. In short, it led to a 65% decrease in the value of oil.

The price war happened when OPEC+ countries had a disagreement with Russia about reducing oil production due to the pandemic (prices had already fallen 30% due to lack of demand).

It should also be noted that this price war had a knock-on effect to a number of other markets and economies, severely damaging the oil production in the USA as well and potentially was one of the most significant factors in the ongoing financial crisis we are in today.

In 2021, commodities traders should be on the lookout for similar events. It seems in 2020 Russia was the instigator, though both Saudi Arabia and Russia blame each other.

But such a crisis could also be caused by any other large exporter of oil (look into the 1979 oil crisis).

The possibility of something like this happening again is uncertain. It lays bare the power large oil producers have on completely trashing the market.

But, arguably after seeing the devastation they could have caused, two may stay away from creating such a catastrophe again, so it is also very possible that 2021 may be very calm for oil prices. 

Naturally, on top of it all, unrest in the Middle East will continue to be a major factor in the oil trade as well as it has the last two decades.

Will Natural Gas Burn Bright in 2021?

Natural gas is another key market to trade in 2021, but like all other markets in this list, there are a plethora of variables to consider, each one with the ability to increase or decrease prices.

Russia is the world’s largest exporter of natural gas, the majority of which is sent to Europe (mostly Germany, Turkey, Italy and the UK) through pipelines that cut across Eastern Europe.

These pipelines have been a cause of contention between Europe and the US, as Europe has become dependent on Russia’s gas supply, implying a shift in geopolitics.

So, it would be wise to keep an eye on Russia’s continued expansion of natural gas lines into Europe and the reaction of the US.

Other important players include Qatar, Norway and the US.

For 2021, Gazprom, Russia’s largest exporter of natural gas, doesn’t expect the ‘glut’ in Europe’s natural gas market to disappear soon

Throughout 2020, Europe’s consumption of natural gas slumped, and Russia has been left with an oversupply. This slump is largely considered a result of the coronavirus.

And as you would expect, this has led to a decline in natural gas prices. With limited storage capacity, many natural gas producers considered reducing production to prevent the price falling any further.

In the US, on the other hand, the natural gas market is predicted to do pretty well as both domestic and international demand continues to grow and production levels stay light.

These two conflicting predictions make it hard to say what exactly will happen in 2021, but this much is certain: if the market does indeed slump, it may be a good opportunity to buy cheap and hold until prices pick up again; if the market picks up, it may be a good opportunity to sell short.

Will Metals Continue to Shine in 2021?

copper price chart, best markets to trade

The metals market, a key commodities market to trade in 2021 might be in some trouble.

The coronavirus has severely impacted the metals market, particularly steel, in 2020 as government lockdowns halted manufacturing activity, especially in Europe.

However, even before 2019, there were signs that steel at least wasn’t doing too well. Supposedly, steel consumption in the EU fell by 5.3% in 2019 and there are signs this may continue into 2021 as well.

And sadly, it also seems likely that the aluminium may also be following in the same direction as steel too as many market experts are forecasting a market surplus for the next few years.

This is partly due to increased use of scrap metal for aluminium which is cheaper and less harmful on the environment.

Copper also appears to have the same problem, a large supply but low demand. However, there is still hope for copper as China plans to utilise copper for a variety of infrastructure projects, including the construction of their 5G networks.

And then there is gold, which also faced production issues because of the coronavirus, practically halting gold mines around the world.

Further to that, we may be reaching our peak gold supply which could slowly start a decline in market supply.

(There’s also another special reason to watch the gold market in 2021 below, keep reading!)

Will Soybeans and Corn Keep Feeding the World in 2021?

On our little green planet, we produce a hell of a lot of soybeans and corn and use them both in a hundred different ways. They are a vital part of the commodities market and 2021 has the potential to be a great year to trade them.

Soybeans had an incredibly low dip around April 2020, but that has then been followed by an incredible shot to the moon, surpassing prices it hasn’t reached in the last few years.

No doubt (sorry to mention it again) but the coronavirus clearly was an impact here. In fact, much of the agricultural market took a huge blow in early 2020 because of the virus.

And to counter this, many farmers in Brazil have started making ‘forward’ sales of soybeans for the 2021-2 season, which may explain why prices shot up so high later in 2020. 

These forward sales are likely an initiative to keep farmers in pocket and have helped commodities traders take advantage of a temporarily undervalued market.

It may be possible that this trend continues in 2021, but if prices stay high, it might make it hard.

For corn, the long-term outlook looks promising and that’s partly due to the weak US dollar. Historically speaking, whenever the US dollar is weak, corn exports do really well.

This is largely because the US is the largest exporter of corn, exporting 38.1% of all corn exports.

And so, if the US dollar remains weak throughout 2021, we may see some excellent action in the corn market.

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Key economic events of 2021

Whichever of the key markets of 2021 you decide to trade, you should be keeping these dates in your calendar! 

Some of the most important economic events of 2021 are tied to the US economy, so you will notice that many of these events are ones happening in the US.

  • Friday 1.1.2021 - New Year’s Day - Many markets across the world are closed.
  • Friday 8.1.2021 - US employment figures released for December 2020 - Can affect a number of markets across the world.
  • Monday 18.1.2021 - Martin Luther King Jr. Day - US exchanges are closed.
  • Monday 15.2.2021 - Washington’s Birthday (also known as Presidents’ Day) - US exchanges are closed.
  • Thursday 25.3.2021 - Gross Domestic Product estimate, US - Can affect a number of markets across the world.
  • Friday 2.4.2021 - Good Friday - US exchanges are closed.
  • Monday 31.5.2021 - Memorial Day - US exchanges are closed.
  • Thursday 24.6.2021 - Gross Domestic Product estimate, US - Can affect a number of markets across the world.
  • Monday 5.7.2021 - Independence Day (in lieu) - US exchanges are closed.
  • Monday 6.9.2021 - Labor Day - US exchanges are closed.
  • Thursday 30.9.2021 - Gross Domestic Product estimate, US - Can affect a number of markets across the world.
  • Monday 1.11.2021 - All Saints’ Day - Holiday in many EU countries.
  • Thursday 25.11.2021 - Thanksgiving Day - US exchanges are closed.
  • Friday 26.11.2021 - The day after Thanksgiving Day - Some US exchanges will close at 1 PM.
  • Wednesday 22.12.2021 - Gross Domestic Product estimate, US - Can affect a number of markets across the world.
  • Thursday 24.12.2021 - Christmas Eve - Some US exchanges will close at 1 PM, many others may also be closed.
  • Friday 25.12.2021 - Christmas Day - US exchanges are closed as well as many other markets in Europe.
  • Saturday 26.12.2021 - Christmas Day (in lieu)/Boxing Day - Many markets are closed throughout the world.
  • Friday 31.12.2021 - New Year’s Day - Many markets will be closed ahead of New Year’s Day, particularly in the East, such as Australia who celebrate it earlier than most of the world, for example.

Make sure you know how to use an economic calendar! It will help you a lot when trading the key markets of 2021.

Is economic recovery from the coronavirus likely in 2021?

A pandemic like the coronavirus has the ability to literally infect everything and 2020 has been battered by it.

But when it comes to predicting any kind of recovery in 2021, it is just too hard to tell what will happen. 

There are some experts that believe it will continue well into 2021, so it is possible that we might not see any kind of proper recovery from the coronavirus until the third or fourth quarter of 2021, or in the worst-case scenario, not until 2022.

This is incredibly important to consider when looking at what market to trade in 2021, as there is a real possibility that it could be either a very stagnant year or exactly the opposite, a very volatile year, economically speaking.

Though, that said, some markets may feel the bite worse than others. While no one has fared well, some companies that provide services that you typically would not have to visit the store for clearly have done better.

They’ve been able to monopolise the fact that most people have to stay at home. They’ve benefited from other industries’ hardships.

That means that traders need to be prepared to change things up a lot if they want to keep going. They need to be able to say goodbye to some stocks, currency pairs, cryptocurrencies or commodities and say hello to new ones.

Good traders can survive in any environment, tough economic conditions are character building, they make traders who they are and teach you how to be cautious and think about risk before profit.

Traders who start out trading in good economic conditions think it will last forever, and when they see some volatility, they don’t really understand how deadly it can be to their trading account.

In the end, some stress is necessary to keep us in the game and help us thrive. If you can survive economic turmoil, you can survive any market, good or bad, and that is when you’ve truly become a trader.

All that aside, the pandemic is predicted to probably get worse over the winter of 2020-21, so don’t be surprised if the start of 2021 gets pretty rough. It may be a good idea to revisit your risk management strategy to make sure you can make it through the winter.

Start Watching the Price of Gold

If you start worrying if things are starting to get a bit rough throughout 2021, always take a look at the price of gold; is it on the rise or fall?

People always flock to gold in times of uncertainty. We tend to use it when all other forms of currency fail us.

Related: Learn How to Trade Gold Online

Even if you don’t trade it and have no plans to ever do so, keep an eye on it to see what’s going on. It will give you a good understanding of the level of panic people are going through.

Learn to trade the best markets of 2021 before it starts!

If you really want to take advantage of the best market opportunities of 2021, you better learn how to trade!

And, even if you’re already trading, sharpening those skills will only make you a better trader, whatever market you’re trading in 2021.

2021 doesn’t have to be a year of uncertainty if you get yourself prepared with a trading course!

If you’re not certain 2021 is the right year to start trading, make it a year of learning, to prepare you for 2022 where you’ll be armed with knowledge in a potentially more hospitable economic climate.

FAQs about the key markets to trade in 2021

Here are some frequently asked questions about trading for 2021. Hopefully, they will answer some important questions on your mind.

Will the world economy crash in 2021?

That’s a pretty scary question! We all hope not!

The truth is, many market experts have been making claims over the last few years that we should expect a big market crash, but so far this hasn’t happened yet.

We can’t be sure if these claims are based on fact, or if it is just fear-mongering designed to get your attention and make you spend your money in a certain way (there’s a hell of a lot of that on the Internet!).

There are some significant concerns, world debt being one of the biggest. Supposedly in the first quarter of 2020, global debt soared to $258 trillion, according to the Institute of International Finance.

Climate change also continues to loom over us as a potential cause of economic problems as well; we saw some fierce wildfires in Australia and California in 2020, for example. 

Though it may not always directly affect the world economy, the threat is there and it’s only going to get worse.

Can I still profit from trading in 2021?

Of course! But you need to continue being cautious. There will be plenty of opportunities for forex, cryptocurrency and stocks if you know where to look.

If the market is indeed volatile, you may need to change the game and start trading something different that is less risky.

But it is also very possible that 2021 will be a great year and that there will be nothing to worry about, so keep that in mind too!

Will the coronavirus continue to interfere in trading in 2021?

Most likely yes, unfortunately. 

Experts believe that the coronavirus is going to continue to be a major factor throughout the winter of 2020-21 and that it might not disappear until some point well into 2021.

You also have to remember that just because the coronavirus disappears, doesn’t mean that the economic impact will just automatically clear up, it will likely stick around for a while. 

The economy will need time to get back up to speed again.

But the coronavirus may not be a completely bad thing for everyone. You also should remember that companies like Amazon and Alibaba have done pretty well at the expense of other retailers, likely due to people preferring to order online instead of going out shopping.

Noticing things like this can be a huge benefit when looking for an edge during a crisis; you need to look to where the money has started moving.

Is it better to trade forex, cryptocurrency or stocks in 2021?

All three will present great trading opportunities in 2021 and saying that either of the three is better than the others is not really fair.

It all depends on your market knowledge. You may simply know a lot more about forex than stocks, for example.

What you should be thinking about instead is how the market you trade will change in 2021.

Whatever happens next year, money is always going to keep moving, traders will keep trading forex, cryptocurrencies and stocks.

What will be the best forex pairs to trade in 2021?

Sticking to the majors and minors would probably be best as you probably would in any other case.

That said, you should probably exercise some caution with the euro and pound if the situation continues to be prolonged and especially if it deteriorates.

The US dollar may also be risky, though some of that risk depends on what will happen after the US elections in November 2020.

What will be the best cryptocurrency to trade in 2021?

Most likely, the best cryptocurrency to trade in 2021 will be one of the best-known cryptocurrencies. 

It is less likely that it will be a cryptocurrency that is losing popularity. That said, cryptocurrencies come and go very quickly.

Despite this, Bitcoin, Ethereum and Ripple - the big three, are likely to continue dominating the crypto scene.

The three still present plenty of promise and neither of them has really reached their full potential, yet.

You should of course look out for cryptocurrencies that are rising. It looks like Chainlink and Crypto.com Coin might fit that bill for 2021.

What will be the best stock to invest in 2021?

Most likely it will be a stock related to tech with Amazon looking like it is still a key contender to be the best stock to buy for a good while.

Make sure whatever you choose, you know enough about the industry because there sure are a hell of a lot of choices out there - don’t just go for whatever stock has the best ROI, because if you’re not sure what makes the stock great, you also probably don’t know what could make it bad!

Why is it important to learn to trade before 2021?

2021 looks like it might be a very dynamic environment to trade in, no matter what market you choose.

The reasons to learn how to trade before 2021 are the same as any other year nonetheless; if you don’t invest in learning how to trade, you run the risk of losing all you have. 

A huge problem many beginners run into is that they don’t understand what trading is really all about, their expectations are all wrong.

The best markets to trade in 2021 demand that you know how they work and how to mitigate danger effectively. These are skills you have to learn, no one knows them from birth!

Key points

If you remember anything from Best Markets To Trade In 2021: All You Need To Know!, make it these key points.

  • Big forex players, the US dollar, euro and pound will likely be under a lot of pressure in 2021. But traders can still profit if they’re cautious.
  • The cryptocurrency market is continuing to shapeshift. Some well-known cryptocurrencies are disappearing while new ones are coming to take their place.
  • The stock market is still dominated by large tech. And it doesn’t look like that is going to change anytime soon.
  • The coronavirus is still a major threat to all markets. All markets face major risks from the coronavirus, and no one can tell when we might see a strong economic recovery.
  • 2021 could be a great year to sharpen those trading skills. Make it a year of learning and you won’t regret it!

Learn more about the best markets to trade in 2021 with one of our trading courses!

Want to learn more about trading different markets? Then sign up for one of our trading courses!

If you have enjoyed reading Best Markets To Trade In 2021: All You Need To Know!, please give it a like and share it with anyone else you think it will be of interest too.

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