Trading is a complex activity that requires in-depth analysis and knowledge of the financial markets. Successful traders often rely on a variety of trading ideas to achieve their goals. However, with a large number of trading ideas to choose from, traders may find themselves struggling to select the most promising ones. In this article, we will explore various trading ideas and provide guidance on how to choose the best ones for your trading strategies.

One simple criterion for choosing a trading idea is familiarity with a particular financial instrument. Every trader has a favorite asset that they know inside out. It's the one they started trading with, tested different strategies, and remember almost by heart its price moves in the quotes history. This knowledge can help you objectively assess whether a trading idea is promising or not. Therefore, when choosing between different trading ideas, it is advisable to go for those related to instruments that you are familiar with.

Another factor to consider is yearly highs and lows. When certain assets reach historical levels, market analysts and the financial press always take note. At such moments, quotes are likely to rebound, and the price never reaches multi-year highs right away. These moments are rather rare, and if your trading idea is associated with them, it is better to prefer it to other trades.

Traders can also opt for tactics related to similar assets, such as major currency pairs, metals, or energy resources. This strategy can be useful in several scenarios. Firstly, when there is an arbitrage situation for closely correlated assets that suggests differently directed trades (sale of one and purchase of the other) after their price charts diverged. Secondly, when a trading idea suggests positions in the same direction for correlated assets. For example, when EUR/USD, AUD/USD, GBP/USD currency pairs are "sending buy signals." Lastly, when a trading idea emerges for an asset that is lagging behind the leading one and suggests "narrowing the gap."

In any industry or type, there is always a leader, a liquid instrument with a larger money turnover, compared to its "fellow assets" that follow its trend and direction. For metals, it is gold, for currency pairs, it is EUR/USD. A good example of how the idea about narrowing the gap works is the GBP/USD rate, which dropped deeper than other major currency pairs after the referendum on Brexit.

A trading tactic based on insider information can also substantially affect the market and provide a 100% advantage over the others. However, insider dealing is illegal and considered a criminal offense in the entire financial world. Therefore, traders should avoid this strategy altogether. However, traders can learn legal information by means of analysis. A real trading example is scalping on the central bank's interventions. Having studied economic indicators of a certain country, assuming the intervention and the direction, a trader needs to wait with a "high volume in the market depth" for a signal to go ahead. While other traders will be wondering why the volume is high, that trader will make "deep" profits. The interventions are very quick, for a central bank usually aims at moving "the rate" as far as possible during a short period of time.

In conclusion, choosing the right trading ideas can be challenging, but with a little analysis and research, traders can narrow down their options to the most promising ones. Factors such as familiarity with a particular financial instrument, yearly highs and lows, and tactics related to similar assets can all play a role in selecting the most suitable trading ideas. However, traders should avoid illegal strategies such as insider dealing, as they can lead to severe consequences. Ultimately, the key to success in trading is a combination of careful planning, disciplined execution, and continuous learning.