A high level of uncertainty means it is now more important than ever to draw on expert opinion to guide investment decisions.

For many online traders, that could mean being satisfied with a number of small trading profits rather than one or two big trades.    

Greg McKenna is the chief market strategist at AxiTrader. His advice is to take the "money ball" approach to investing and trading in this time of uncertainty.

"Rack up a lot of small wins with good risk control. That's my approach, because there is a high level of uncertainty surrounding the upcoming European elections in the Netherlands, France, Germany and maybe Italy," he says.

McKenna also advises using this method given the substantial risks around the timing and efficacy of the implementation of Donald Trump's policies.

"Rising geopolitical tensions in the wake of the approach the new Trump administration is taking to foreign relations is another reason it may pay for investors to take small bets in markets at the moment. With market volatility still priced near 10-year lows, missteps are likely to be magnified."

Fundamental data essential

In this environment, McKenna says it is essential to be across fundamental data such as GDP growth and inflation.

"Don't be caught by rhetoric. This is a standard investing and trading axiom but in this current news cycle, which seems to have sped up and is dominated so much by partisan vitriol, it is easy to be distracted from fundamentals."   

McKenna's other tip for investors is to have a solid investment process in place. "Many traders don't really have a good decision making and trade execution process, or they are easily put off their process by news. A solid process won't guarantee profitability, but it certainly reduces the chances of failure."   

A solid process is especially important right now given the potential for a market correction. Markets have skyrocketed since Donald Trump's election. The ASX 200 was trading at below 5000 points at about this time last year, while at the moment the index is sitting well above 5700.

But there is a risk markets could fall. Stephen Innes, senior currency trader at OANDA Australia and Asia Pacific, explains markets are just starting to respond to the notion that more protectionist trade policies out of the US might have negative consequences.

"Regardless of whether you're a friend or foe of the US, no one is off limits when it comes to trade. We're likely only in the early stages of a broader US dollar and equity market correction," Innes says, adding that this should also result in volatility in markets.

US dollar focus

Ben Smoker, chief executive of Saxo Capital Markets Australia, agrees the US dollar will be a focus for investors this year.

"The strength of the US dollar last year will have side effects on global growth as the burden of US dollar-denominated debt servicing plays out around the world," says Smoker.

"We've already seen hints from Trump that he may pursue a weaker US dollar policy, in opposition to China's determination to weaken its currency. It's possible the Fed will support this cause by maintaining a less hawkish stance than markets currently expect, particularly if expectations for macroeconomic growth decline."

For Australian investors in US equities or US dollar-denominated bonds, Smoker says it's important to be wary of the currency effect a weaker US dollar might have on investment performance. "A US dollar hedge may prove prudent."

Turning to global equities, Smoker notes they are relatively affordable and reflect modest growth forecasts.

"If growth exceeds expectations, there is room for further upside in equities valuations. It's also important to recognise long-term global bond yields are still languishing at around 1.5 per cent, while the dividend yield on global equities is around 2.5 per cent. So, if dynamic asset allocation is your mantra, then a slight overweight bias towards equities over bonds seems logical."

'Trumpenomics' optimism

He says Trump's victory has effectively flipped the focus for equities investments away from defensive sectors such as utilities and consumer staples that occupied investors' minds in 2016 to cyclical and financial sector stocks.

"This can be attributed to the US labour market pushing closer to full employment, inflation expectations going higher, and a hawkish flight plan from the Fed."

Smoker also agrees the optimism that surrounds "Trumpenomics" has been the X factor driving markets so far this year.

"If US interest rates continue their upward trajectory, an obvious equity strategy is to be overweight financials, excluding real estate, as well as information technology, consumer discretionary and healthcare assets," he says.

"These four sectors have the lowest net debt-to-EBITDA ratios and correspond to approximately more than half the world's equity market." This makes them attractive to retail investors.

In this environment, however, it's important to be properly diversified across markets and assets.

Tool accessibility

"The days of investing in a couple of large mining stocks, a few local bank stocks and maybe a utility stock or two and thinking that will set you up for retirement are probably over," Smoker says.

The tools available to investors to broaden investment horizons across geographies and asset classes are more accessible than ever before.

Similarly, it's much easier to access information about global assets to make informed investment decisions. "It makes sense to take advantage of this and venture beyond your front door when it comes to trading and investing," Smoker says.