Trading Without Boundaries: How to Choose the Right Market for Success
If there’s one thing I’ve been trying to pound into your head, it’s this: becoming a consistently profitable trader is brutally tough. The odds? Stacked sky-high against you. The path to success? Grueling, merciless, and absolutely not for the faint-hearted.
Yet, somehow, plenty of traders still convince themselves they can afford the luxury of doing things their way—choosing their preferred style, instruments, or markets. The reality is, the smartest approach—the one that truly maximizes your chances of success—is to focus on the strategies and markets that offer the greatest edge, no matter how they align with your preferences or preconceived notions.
This principle holds true for both novice and seasoned traders alike. The most successful traders transcend labels such as equity trader, futures trader, or forex trader. They are simply “traders”—agile, unattached, and laser-focused on seizing opportunities where the edge is most pronounced.
The ultimate goal is to become a skilled, flexible trader who can recognize and act on outsized opportunities in any market. Remember trading, at its core, is simply about identifying a strategy with an edge and executing it effectively, regardless of the market. However, no matter how appealing a market may seem, diving in without a detailed plan is a recipe for disaster.
Even the most versatile traders have a primary market—a home base—where they concentrate their efforts, refine their skills, and develop an intimate understanding of the terrain. For beginners, it’s essential to start by mastering the basics in one market. Build your skills, learn the nuances, and develop your ability to identify and exploit an edge before considering other markets. Learn to walk before trying to jump.
It’s also crucial to recognize that finding an edge isn’t defined solely by trading strategies. Other factors play a significant role, such as market accessibility, security, and transaction costs. Additionally, your access to education or mentorship is critical when choosing a market to specialize in.
So after the last post about where to trade, let’s talk about what to trade.
So, what should a trader look for when choosing a market to trade?
Education
It all comes back to education. Access to a quality education is the number one factor when deciding which market to trade. If you’ve got the chance to trade at a reputable prop firm that offers solid education and hands-on training, the choice is obvious—take it. If you have access to a seasoned, battle-tested mentor who’s proven their chops in a specific market, that’s more than enough reason to dedicate yourself to that market. But let’s be clear: the opportunity to join some paid chat room hyped up on X by a seven-figure-PnL-posting influencer is not enough reason to choose a certain market.
If you don’t have the opportunity to trade at a professional firm, from a trading floor, or under the mentorship of a verified, experienced trader, you’ll need to take responsibility for finding your own education in your chosen market. The upside is that this independence gives you flexibility in choosing your market. Use the following criteria to guide your decision-making process.
Volatility
Volatility is a trader's best friend. We thrive in volatile times and chaotic markets. The more movement, panic, and disorder, the better. Nearly every successful trader I know can directly link their profits to market volatility. Personally, as an equity-focused trader, the lion’s share of my profits over a 25-year career came during just a few intense periods: the 2008 Global Financial Crisis, the 2020-2021 Covid panic, and the subsequent market euphoria. I suppose it’s one of the downsides of this profession—we’re often reliant on crisis, disaster, and turmoil. In a way, we’re the funeral parlor owners of the financial world.
Volatility tends to ebb and flow within markets. You’ll have calm, uneventful stretches—and then, out of nowhere a tsunami of volatility crashes in drenching us lucky traders in riches. That said, some markets are inherently more volatile than others. For example, the crypto market is far more volatile compared to the Forex market.
It’s also important to recognize that even within a single market, volatility can shift between sectors. Don’t be misled by a low VIX (volatility gauge) reading in the equity market—while it may seem stagnant overall, there are often pockets of volatility. It could be quantum computing stocks surging, or speculative small caps getting wrecked. Meanwhile, in the crypto space, stablecoins might be sluggish, but meme coins could be going wild. That’s why It’s important to dive deep into a market to gauge the true volatility. It is also why trading markets with a variety of instruments can give you an advantage—more opportunities to capture volatility wherever it arises.
Inefficient Markets
The most efficient trading strategies are those that take advantage of inefficiencies, or “glitches” in the markets (I delve into this subject here). To exploit inefficiencies, you need an inefficient market. Fragmentation breeds inefficiencies—the crypto market, with its multitude of exchanges, is a prime example. Additionally, markets not fully dominated by algorithmic trading tend to present more inefficiencies, and I’d much rather compete against inexperienced retail traders than face off against the high-frequency bots deployed by hedge funds.
Whether it’s exploiting price disparities between exchanges, taking advantage of emotional retail traders, or navigating niche markets where automation hasn’t taken hold, inefficiencies provide an edge. And where there’s chaos, there are inefficiencies. The best opportunities typically emerge when markets are wild and disorderly—where volatility and inefficiencies intersect, fueling each other in a virtuous (or vicious) cycle for traders who know how to exploit them
Accessibilty & Security
When choosing a market to trade, it’s essential to ensure it’s accessible, secure, and cost-effective. Simply having access to a market isn’t enough—traders must consider factors such as leverage, commissions, fees, and trading software. High transaction costs can quickly erode the edge from a seemingly profitable strategy, while insufficient leverage can severely limit potential profits. Additionally, certain trading platforms or software might provide enough of an edge to make trading in a particular market worthwhile.
Security is also another major concern. No point making a ton of cash if your broker or prop firm blows up or runs off with your cash. One reckless act by one reckless trader–combined with lax risk management procedures–can take down a whole firm. Unfortunately, in the unscrupulous world of shady online brokers and prop firms, “bust” might also mean that the broker just ran off with their client's cash.
One way to mitigate this risk is by trading through a federally insured broker that offers multiple products, such as Interactive Brokers. While this option provides peace of mind, it often comes with trade-offs—higher commissions, lower leverage, and less advanced software compared to some uninsured brokers or prop firms. If you’re willing to take on the added risk of working with an uninsured firm, do your due diligence. Even then, you may find yourself holding your breath every time you log into your account, preying it is still there.
As if trading wasn’t already a challenge, here’s the kicker: you can do everything right, defy the insane odds, rake in piles of cash—and still lose it all because of stuff completely out of your hands. So, let me ask you—still want to be a trader?
Schedule
When choosing a market to trade, it’s important to consider your schedule. Each market has its own unique opening hours—some don’t close at all (crypto)—and the activity can vary significantly throughout the day. Equity markets experience a surge in volume and volatility at the open and the close. Futures and Forex markets also display their distinct patterns at different times.
For the past 10 years, I’ve primarily focused on trading equities during the U.S. premarket session, as I find the market more inefficient at that time, and it aligns with my success. This works well for me, as the premarket opens at 10 a.m. here in Europe. However, for traders in the U.S., it would mean waking up in the middle of the night, which is not only inconvenient but can also significantly impact trading performance when done half-asleep.
For those juggling trading with a regular job, finding a schedule that matches your availability is essential. If your trading hours coincide with the midday lull in equity markets, you risk missing critical opportunities. The trick is to choose a market that suits your schedule—one that allows you to focus without distractions, while still offering solid opportunities during your available hours. Whether you prefer early mornings, late nights, or off-peak hours, finding a rhythm that suits your lifestyle will be key to building consistency and achieving long-term success.
And while the 24/7 access of some markets, like crypto, might sound appealing, it comes with significant downsides—like sleepless nights spent obsessively checking quotes. Honestly, I’m already pushing my sanity to the limit with the five-day schedule of equity markets. I can’t even imagine the mental state I’d be in after a decade of non-stop crypto trading. Balance is everything, and it’s key to avoiding complete burnout.
The Bottom Line
Fortunately, the decision of which market to trade was made for me. I was lucky enough to land a job at a reputable prop firm, and equity markets have remained my home after all these years. That’s where my experience and expertise lie. These markets consistently offer pockets of volatility, have hours that suit my lifestyle, and over the years, I’ve uncovered plenty of inefficiencies to capitalize on. I also have a secure broker that provides reliable software, favorable leverage, and competitive commissions.
That doesn’t mean I’m not open to opportunities in other markets. While equities are my bread and butter, there are times when other markets present such a significant edge that even a newcomer can capitalize. If you’ve developed a solid strategy in your chosen market and are consistently profitable, consider yourself lucky—don’t be the person with an amazing spouse but a constantly wandering eye. That said, if your “marriage” to your market goes south, or some jaw-dropping opportunity shows up, don’t hesitate to make your move.
When searching for your next market—or "partner"—many people turn to social media. Platforms like X can be useful, offering a snapshot of where the action is, but let’s be real: social media often presents a glossy, exaggerated version of reality. The best way to identify real opportunities is still the old-fashioned method: connecting with your network. This underscores why building strong connections is so important. Who would you rather trust—a trader-influencer flexing their equity wins, or a friend sharing an edge in the crypto space? Keep your eyes and ears open, but always evaluate the credibility of the source.
Many traders I respect within my network are currently focused on the crypto markets. In fact, one of the best pieces of advice I can give these days is to explore the crypto space. Crypto offers a unique combination of volatility, fragmentation, inefficiency, thousands of instruments to trade, and easy accessibility. That said, the security aspect does concern me a bit.
“Exploring the crypto markets” isn’t about hoarding bags of BTC or chasing the latest hot coin—it’s about digging deep to uncover inefficiencies and arbitrage opportunities. It might involve shuffling coins for ICO drops or diving into meme coins to find the next Fartcoin. A savvy trader knows it’s better to take on unskilled opponents (like TikTok’rs) using advanced tools (such as wallet maps) in inefficient markets (like meme coins) than to compete against skilled players (institutions) using basic tools (technical analysis) in efficient markets such as Forex, futures, or equities.
The crypto market isn’t the only one that has caught my attention. I’ve also spent a considerable amount of time trading on Polymarket, a relatively new exchange known for its political prediction markets. This market is still fairly inefficient, and trading bots haven’t completely overrun it yet, making it a great place to find an edge.
It’s always a good idea to stay on the lookout for new and emerging markets. If you think the crypto markets offer an edge now, you should have seen them 10 years ago in their infancy—the volatility and inefficiencies were absolutely mind-blowing!
At the end of the day, successful trading isn’t about being attached to one market or strategy—it’s about staying flexible, recognizing where the greatest opportunities lie, and being smart enough to seize them. Whether it’s equities, crypto, or something entirely new, the key is to continuously learn, adapt, and stay disciplined in the face of chaos. Keep your eyes open, always have a plan, trust your process, and never stop hunting for that edge.