Because the shorter the trading cycle, the more ups and downs you can participate in, which means more opportunities. What varieties are most suitable for short-term trading and can maximize our fluctuating profits? Come and have a look with me.

There is no doubt that the varieties suitable for short-term trading must be highly volatile. This kind of fluctuation should not seek unilateral rise or unilateral fall, as long as its fluctuation can offset the transaction cost.

In our daily transactions, the varieties with higher volatility are: European and American currency pairs, gold and crude oil. In my opinion, these three are the most suitable varieties for short-term trading.

The European and American currency pairs are chosen because the euro is the currency with the highest weight in calculating the US dollar index, accounting for 57.6%. It can be said that trading European and American currency pairs is trading the US dollar index. As we all know, the US dollar is a global hegemonic currency, and the eyes of the whole world are focused on the economic development of the United States. Whether it is the hot events such as the US election, the Federal Reserve's interest rate decision, or the breakdown data such as the non-agricultural employment report, it will cause a lot of market fluctuations.

On the other hand, European and American currency pairs are also the most traded currency pairs in the world, accounting for about 30% of the total transactions of all currency pairs in the whole year. Such a large turnover brings sufficient liquidity, which is too important for short-term traders. So it seems that European and American currency pairs are undoubtedly very suitable for short-term traders.

Let me talk about the reasons for choosing to trade gold. Actually, I don't need to say much. Everyone knows the great influence of gold. Gold is the core safe-haven asset in the world. When there is economic depression, stock markets in various countries fall and currencies depreciate, gold will rise sharply because of panic. The phrase "antiques in prosperous times, gold in troubled times" illustrates this situation well.

Even when the fundamental news is relatively light, the natural volatility of gold is very high. In fact, in the market, there are many short-term traders who only operate gold varieties and do not touch other trading varieties. Moreover, the advantage of the gold market over the European and American currency pairs is that the relevant data about gold are more transparent, and you can find all the needed data at the World Gold Council. In the money market, because of national policies, those important information are often blocked or modified. There is no doubt that gold is the most suitable variety for short-term trading.

Then why did I choose crude oil in the end? This is because it complements the gold transaction. Gold is a countercyclical safe-haven variety, while crude oil is a procyclical value variety. When the global economy continues to recover, the demand for crude oil will rise steadily and the price will also rise.

In addition, the attention and trading volume of crude oil are also high. Especially after three oil crises, the position of crude oil in the international market is irreplaceable. The more people pay attention, the more opportunities there are. What short-term traders need to do is to seize these opportunities.

Well, the three varieties I mentioned above, Europe and America, gold and crude oil, seem to me to be the most suitable varieties for short-term trading, but we should also remember that short-term trading has great profits, but the corresponding risks are also high. The varieties I mentioned fluctuate greatly, so when trading, everyone must have clear trading rules and clear trading discipline, and strictly abide by them; At the same time, we should do a good job in position planning and capital risk management.