Make money trading in 2021: Top 5 markets to trade

You would have been hard-pressed to find a financial market that wasn’t volatile in 2020. The pandemic was like a dictator, imposing its insurmountable influence across the markets. But while volatility in the markets can be unsettling, it also brings with it opportunity. And with a potential global economic recovery on the cards, 2021 could be saturated with trading opportunities waiting for traders just like you to exploit and take advantage of. So, here are five markets in particular that you might be able to make money on in 2021.  

  • 1. Bitcoin
  • 2. Wall Street
  • 3. GBPUSD
  • 4. Gold
  • 5. USDCNY

1. Bubble or burst? In 2020, Bitcoin saw some traders living the dream, but it’s not too late for you in 2021

Bitcoin can be related to super fights in combat sports – a Manny Pacquiao – Floyd Mayweather or Connor McGregor v Khabib Nurmagomedov kind of occasion, where at the time everyone knows it’s big. But the sheer scale, hype and excitement are only truly appreciated a few years later when looking back.  

Many traders believe Bitcoin is in its prime at the moment. What’s meant by this is that it’s garnered enough popularity to gain worldwide attention, and yet, if several experts are to be believed, it’s still far from reaching its peak price.  

Elon Musk, Warren Buffet and JP Morgan have all weighed in on the Bitcoin debate, with the latter even predicting it could reach heights of $146k. So, you may have missed out on investing in the world’s most popular Cryptocurrency when it was worth a mere $100, but you don’t have to miss now. You still have the chance to trade it before it rises to the next major milestone of $100k.

Of course, it’s not guaranteed to go up, but the beauty of trading Bitcoin is that the bears among you can also get involved. We offer CFD trading on Cryptocurrencies, meaning you never actually own the asset and can also take advantage if, for instance, the Bitcoin bubble bursts and its price plummets.  

Cryptocurrencies have had their fair share of legal issues, and some major banks and government officials are strongly against adopting these digital currencies into our society. So, if you’re on the side of the fence that doubts Bitcoin’s longevity, when better to short it than in 2021 with it reaching all-time highs?

2. USDCNY – China-US trade war likely to thrust USDCNY into the spotlight

Sino-US tensions have heightened in recent years, with Trump’s imposition of trade tariffs stirring the pot and sparking retaliation from the Chinese. This escalated into a full-blown trade war that cost US firms an estimated $1.7 trillion in market value.  

But now, what will the appointment of Biden as Trump’s successor mean for trans-pacific relations? This is why USDCNY will be such a fascinating Forex pair to trade in 2021, with both countries also trying to stage an effective recovery from COVID. Even without context, these two currencies represent the two largest economies in the world, so naturally, USDCNY will always have great significance – but even more so this year. Don’t miss out on another market that could provide opportunities to profit from in 2021.

3. Wall Street – US instability could mean more 1,000-point Wall Street swings are coming

No market is more iconic in trading than the Wall Street Index. It lists some of the largest global companies in the US, and as such acts as a major indicator of economic strength.  

So, at the best of times, Wall Street has the potential for great moves given the calibre of stocks it lists such as Apple, Microsoft and Visa. But as we all know, these are far from the best of times. Tensions are arguably at an all-time high in the US, with the death of George Floyd threatening civil war. Joe Biden’s appointment in the White House may bring more tranquility in the long-term, but it still seems one minor spark can cause an eruption and send the country back to times of violent protests.  

COVID has, and will continue to, wreak havoc on the economy, with the US slow to react and implement cautionary measures to combat the spread of the virus. This is another factor that’s heavily impacting those top companies on Wall Street, and with 2020 seeing Wall Street suffer its greatest single-day loss in history, it won’t be surprising if further volatility is felt in 2021. If the volatility hits again, this could be a great market to try to profit from.  

4. GBPUSD – Does COVID and the Brexit aftermath guarantee GBPUSD volatility?

This civil unrest and continued devastation of COVID means the market volatility will span across to Forex pairs. Any Forex pair consisting of USD could be volatile, but one in particular that could offer the greatest opportunity is GBPUSD.  

But it’s not just the USD side of the GBPUSD Forex pair that will contribute to volatility this year. The fallout from Brexit has been heavily documented, with import fees and custom issues causing chaos for many industries. It means that uncertainty remains high and confidence low, which ultimately can lead to a lack of spending in an economy.  

That being said, we know how much of an influence COVID has had on markets, but the UK is leading the way in terms of the vaccination rollout process. This is what makes GBPUSD such an interesting FX pair to follow in 2021. There will be opportunities to make money trading it, but how its price will move depends on a combination of factors – Brexit, COVID recovery, US civil unrest etc.  

5. Gold – A safe-haven among a sea of chaotic markets

We talked a lot about volatile markets, but if you’re looking for an asset that historically hasn’t carried as much risk as the likes of Bitcoin, which value derives from its intrinsic worth to our society, Gold is your answer. Although it can experience volatility, the longer-term trend of Gold often makes it a steady investment.

Thanks to its sought-after properties like being malleable, non-corrosive and finite availability, Gold is a unique, in-demand commodity. The fact that it is not centralised or regulated by a governing body like a central bank or government, means that its value is purely dictated by supply and demand.  

For this reason, it’s considered a safe-haven asset, where investors will put their money in Gold during times of volatility to protect their portfolios against more volatile moves experienced by other markets. Naturally, with the chaos that COVID, BLM protests, bush fires, international conflicts and Bitcoin bull runs have had on the markets, Gold was in focus in 2020 and will continue to be in 2021 and beyond.   

Although the outlook seems more positive for the latter part of 2021, heavy volatility is still looking likely if this is the case, Gold will once again be in focus and at the forefront of most successful traders’ portfolios, and opportunities will be there to profit on.  

How do I make money trading in 2021?

To start making money by trading these active, volatile markets, simply sign up for a GMI trading account. We have over a decade of experience connecting people just like you to the markets and know exactly what our clients need to be successful. We offer tight spreads, high leverage and dedicated support to provide the perfect trading environment for you to prosper. Don’t continue to miss out on these unique market opportunities. Take advantage, start your trading journey and make 2021 your year. Visit gmimarkets.com to start trading today.

Need a hand? Don’t hesitate to get in touch with us for any of your trading enquiries.

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