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Taking Advantage of the Post-Holiday Boost

The rest of the world seems to be very optimistic about the U.S. economy right now. For U.S. based traders, this is something that you should be taking advantage of to the best of your ability in order to max out the amount of profits you are making.

It really doesn’t matter if you are based within the U.S. or not, though. When the U.S. economy is doing well, the rest of the world tends to follow along, too, since this is the world’s most active and biggest economy. When the U.S. is healthy, so is the rest of the world. But the fact is, there are fewer obstacles and more doors are opened for trading opportunities when you are based in the United States. Even if you live in China or somewhere else, odds are you can be just as successful.
For example, Beijing appears to be ready to announce a stimulus strategy geared toward revamping its economy. A Chinese investor can use this info to prepare himself for a future profit, especially if things happen quickly. In Europe, markets are also rising.

You need to be careful how you interpret this holiday action information, though. While it’s true that on Monday the world’s markets generally went up in value, U.S. markets were closed due to the Memorial Day holiday, so volume was naturally lower than normal. The implication here is that it’s quite possible that this effect could be exaggerated on the following day, once markets reopen. There is also a possibility that the entire effect could be nullified, but this is less likely to happen since markets tend to follow strengths and strength has already been shown in this instance. It’s even more unlikely since the S&P 500 closed Friday at above 1,900 for the first time ever.
Post Holiday Trading
The big piece of the puzzle that has finally come into play is the fact that the U.S. housing market is finally on the rise. Where profits here have been few and far between, and losses are still quite common, even six years after the initial housing crisis, the most recent profit numbers say that the housing market had risen by 6.4 percent for the month of April. This good news has boosted the world’s economy, and the effect will probably last for at least a few days, giving short term traders more than enough time to position themselves comfortably to start making money.

Of course, there are plenty of ways to take advantage of knowledge. Some people like to focus on major indices, like the Dow Jones Industrial Average, the NASDAQ, or the S&P, as mentioned above. This is a good strategy, but unless you are willing to invest tens of thousands of dollars, the profits will be only very slight, if even worth mentioning. Stocks are much more profitable over the long term, but they are also riskier. Even as an economy improves, individual stocks can crash down hard. Binary options relieve some of this pressure by allowing you to break trades down into little chunks and get big profits with little risk. This is especially useful if you focus on things like the major indices, since you can get bigger profits per dollar invested in a shorter period of time. This has become a popular method of profiting off of strong markets over the last couple years because it puts money in your pocket faster. There are other methods, too, such as traditional options, but binaries have separated themselves as a tool that can be used with very little invested upfront. And this is something that you cannot do effectively with any other type of trading.
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