Capital.com stated that trading various asset classes for extended durations may yield more profits.
First-time traders profit better with commodities, FX, and indices than equities.
A recent
study by a retail trading provider, Capital.com uncovers that traders who
diversify their portfolios and maintain longer position periods tend to benefit from higher profitability. Comparatively, those focusing on one market or closing
positions quicker are not as successful.
Capital.com Points to
Diversification and Longer Timeframe
Analyzing
the trading behavior of 100,000 global clients between May 2022 and April 2023,
Capital.com found that traders dealing in five different asset classes
typically profited from 60% of their positions. In stark contrast, traders who
concentrated on one asset class on
average reaped profits from only 48% of their positions.
Interestingly,
despite the promising profitability of diversified trading strategies, just 15%
of Capital.com's clients trade across five different asset classes. Most
traders (65%) tend to explore between two and four different asset classes. At
the same time, 20% of clients restrict their trading to merely one asset class.
"Diversifying
your investments is a solid approach to counter the challenging market
conditions," Daniela Hathorn, the Senior Market Analyst at Capital.com,
stated. "Spreading the risk across different asset classes, companies, and
investments can effectively manage risks and prove more profitable during
market uncertainties."
The data
additionally drew a strong link between the duration traders keep a position open and their profitability. Traders who maintained positions between 30 minutes to six
hours were more likely to close with profits, averaging 44%. What is more, they
have utilized stop-losses more frequently.
First-Time Traders Show
Success in Trading FX, Commodities, and Indices
Capital.com's
report also unveiled first-time traders' tendencies to yield higher profits
when trading commodities, foreign exchange (FX), and indices as opposed to equities. Between May 2022 and April 2023, beginners who started trading with
commodities saw profits from 58% of their positions. Those starting with
equities profited from a lower result of 46% of their trades.
"In
light of the increasing interest rates and fluctuating company earnings, it's
less surprising that first-time traders found more profits from FX, indices,
and commodities than single stocks in the past year," Hathorn pointed out.
Table: Trading
commodities first gave the highest success rate
First
asset
Median
success rate
Average
(mean) success
rate
%
of users
Shares
44.44%
46.65%
25.85%
Forex
50.00%
56.81%
11.89%
Commodities
52.75%
58.55%
21.61%
Indices
51.35%
54.99%
9.69%
To assist
new traders in better understanding financial markets and making informed
decisions, Capital.com provides a learning app called Investmate. "We
prioritize education and learning to ensure our clients have access to the best
learning aids and analysis tools to help them make informed trading and
investment decisions," Hathorn concluded.
Execs Move from IG to
Capital.com
During the last
eight months, the retail trading broker made a few important changes in its
executive lineup. In the most recent move since March, the London-headquartered
brokerage announced the appointment of Simone Manni as the Head of Commercial
Marketing in Europe.
A month
earlier, the company appointed IG Group's Niamh Byrne as its Head of UK and
Ireland. Byrne joined the company after spending 14 years at IG Group. In the
meantime, Capital.com has onboarded Greg Adams as the Head of Risk. Like Byrne,
he took over the role at Capital.com from IG.
In October
2022, Capital.com hired Alessandro Capuano as its Head of Europe, which came as
a push for the broker's growth ambitions in the continent. This was the third
talent transfer from IG to Capital.com in recent months.
A recent
study by a retail trading provider, Capital.com uncovers that traders who
diversify their portfolios and maintain longer position periods tend to benefit from higher profitability. Comparatively, those focusing on one market or closing
positions quicker are not as successful.
Capital.com Points to
Diversification and Longer Timeframe
Analyzing
the trading behavior of 100,000 global clients between May 2022 and April 2023,
Capital.com found that traders dealing in five different asset classes
typically profited from 60% of their positions. In stark contrast, traders who
concentrated on one asset class on
average reaped profits from only 48% of their positions.
Interestingly,
despite the promising profitability of diversified trading strategies, just 15%
of Capital.com's clients trade across five different asset classes. Most
traders (65%) tend to explore between two and four different asset classes. At
the same time, 20% of clients restrict their trading to merely one asset class.
"Diversifying
your investments is a solid approach to counter the challenging market
conditions," Daniela Hathorn, the Senior Market Analyst at Capital.com,
stated. "Spreading the risk across different asset classes, companies, and
investments can effectively manage risks and prove more profitable during
market uncertainties."
The data
additionally drew a strong link between the duration traders keep a position open and their profitability. Traders who maintained positions between 30 minutes to six
hours were more likely to close with profits, averaging 44%. What is more, they
have utilized stop-losses more frequently.
First-Time Traders Show
Success in Trading FX, Commodities, and Indices
Capital.com's
report also unveiled first-time traders' tendencies to yield higher profits
when trading commodities, foreign exchange (FX), and indices as opposed to equities. Between May 2022 and April 2023, beginners who started trading with
commodities saw profits from 58% of their positions. Those starting with
equities profited from a lower result of 46% of their trades.
"In
light of the increasing interest rates and fluctuating company earnings, it's
less surprising that first-time traders found more profits from FX, indices,
and commodities than single stocks in the past year," Hathorn pointed out.
Table: Trading
commodities first gave the highest success rate
First
asset
Median
success rate
Average
(mean) success
rate
%
of users
Shares
44.44%
46.65%
25.85%
Forex
50.00%
56.81%
11.89%
Commodities
52.75%
58.55%
21.61%
Indices
51.35%
54.99%
9.69%
To assist
new traders in better understanding financial markets and making informed
decisions, Capital.com provides a learning app called Investmate. "We
prioritize education and learning to ensure our clients have access to the best
learning aids and analysis tools to help them make informed trading and
investment decisions," Hathorn concluded.
Execs Move from IG to
Capital.com
During the last
eight months, the retail trading broker made a few important changes in its
executive lineup. In the most recent move since March, the London-headquartered
brokerage announced the appointment of Simone Manni as the Head of Commercial
Marketing in Europe.
A month
earlier, the company appointed IG Group's Niamh Byrne as its Head of UK and
Ireland. Byrne joined the company after spending 14 years at IG Group. In the
meantime, Capital.com has onboarded Greg Adams as the Head of Risk. Like Byrne,
he took over the role at Capital.com from IG.
In October
2022, Capital.com hired Alessandro Capuano as its Head of Europe, which came as
a push for the broker's growth ambitions in the continent. This was the third
talent transfer from IG to Capital.com in recent months.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
TradingView Adds Spread Betting to Its Platform via Spreadex Integration
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa