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Using the Bull Market to Trade

You’ve probably heard the saying, “what goes up must come down.” While this is certainly true in matters of measuring gravity, it’s not always true within the financial markets. The stock market has been going up consistently year after year since the beginning of the Great Depression. Sure, there have been a few years here and there when the markets have ended down for the year, but the general theme has been upward motion.

So the fact that the U.S. markets are about to enter their fifth year of bull momentum isn’t really a surprise. A lot of investors and traders are asking whether or not it can last, but historically, it already has lasted. It’s been about 80 years and the markets have multiplied in a major way with only slight hiccups along the way.

There are a lot of reasons why this shouldn’t happen, though. The economy is not necessarily in the best shape, despite the fact that the major indices are all at or near all time high points. Jobs are not nearly where they should be, personal finances are in rough shape all over the board, and a lot of people are struggling just to get through life on a day to day basis. Of course, this begs the question why markets are doing as well as they actually are. There really isn’t an exact answer for this, unfortunately, but a large part of this has to do with institutional investors. The world’s largest banks, funds, and other financial powerhouses are able to pour money into companies and commodities today in a way that they never were able to before, and this has given the economy a big boost–albeit superficially.

It doesn’t matter why markets are up as long as you know how to take advantage of that fact. If a big financial firm is pumping money into a stock artificially boosting its price, there’s no reason why you can’t be riding on the coattails, making a profit for yourself at the same time. This is where your trading can turn around and turn into a major source of income for you. A lot of people call this sentimental trading, but regardless of what it’s called, it is a very real strategy, and it’s also a very profitable one.

The best way to do this is to have some sort of signals service working for you. There are many subscription services that you can sign up for with all sorts of different price ranges. As long as you are getting accurate news as it happens with concerns to the assets you are interested in trading, then your service is probably worth the money. Even if it costs a couple hundred dollars per year, this is something that you could make in a few trades with ease if you use the information correctly. Well worth the money.

Again, there are a few ways to approach this, but one of the safest methods is by using binary options. These reduce your risk and help you to know exactly what you stand to gain when you are correct in your predictions. Binaries are growing in popularity, and one of the big benefits to using them is that you don’t need to be right by a lot in order to make a sizeable profit. Binaries have high rewards, even when you are only a penny right in your prediction. Every single other form of trading out there would result in a loss in this situation. Binaries are certainly not the only way to trade effectively, but they can be a valuable tool within your complete trading strategy and add a sense of diversity that wasn’t there before.
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