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Making the Most Out of a Little News

24option Free Trade SignalsCompany mergers are a fact of life. Companies buy each other up, combine forces, or otherwise mix their assets together in order to gain an advantage of some sort. Recently, however, President Obama has stated that he wants to put limits on mergers when done abroad. The reasoning is a little confusing, but what it seems to boil down to is that some companies are merging overseas and it is costing the U.S. a lot of money in terms of tax revenue.

He called it “economic patriotism,” and went on to say that it is wrong, even if it is legal. If something like this were passed into an actual law, though, the effects could be extremely detrimental for the U.S. economy. Companies already feel like they are overtaxed by the government–and in some cases they are right. By taking away legal means of keeping profits higher, these companies would suffer more, driving down stock prices for many major companies, and would incite a mass exodus away from the U.S.–in a permanent and legal manner.

This is not going to happen in the near future, but the fact that the President is warning that it might happen eventually is a dire warning to traders across the world. Right now, U.S. companies are more profitable than ever before, and thoughts like these remind us that this is not going to last for forever. Not only is the situation highly political–Democrats like it, Republicans don’t–it is very controversial in other areas, too. If the government is pushing something that would hurt companies, it will hurt individuals, too, eventually. It’s almost the opposite of what was trying to be done in the 1980s with Reagan’s Voodoo Economic strategy. This pumped money into companies, with the hopes that it would trickle down to workers and back into the economy. This wasn’t as successful as it was hoped to be, but the new approach seems to be even more problematic.

What can you do to profit off of this? It might seem like a lost cause to try, but it can actually be pretty easy if you understand the markets. First, figure out which companies will suffer or profit. Next, pick an appropriate action. Because it’s just speculation right now, the movement shouldn’t be major, but it is a big piece of news and it might have a tiny impact even despite this. And the odds are, many prices will drop a little bit for a short while. Unless you have a huge amount of money available, selling stocks short for just a few hours is not worth it. But binary options allow you to down trade with put options for almost no extra charge. You only are charged for trading if your predictions are incorrect.

The beauty of binaries is that you can have high rewards with little risk. True, you stand a chance of losing all you risk. The difference is that if you lose it all, it’s generally a tiny amount. Whereas a day trader might risk $25,000 or more per trade to make a small profit off of this news, you can risk as little as $10 each time you trade, and still make a decent amount of money. And the good news is that you can do this in hyper-short timeframes, which allows you to segment your risk. This makes for an easier exit strategy if things do not go your way. It also allows you to pack a lot of trades in without having to keep a ton of money on the table at once. If you wanted, you could keep trading 60 second trades all day and make several dozen each day. This lets you make your $10 rollover and earn you hundreds of dollars over the course of a few hours. And if it doesn’t work out for you, you can back off with only tiny losses.

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