{"id":91486,"date":"2016-06-17T07:00:18","date_gmt":"2016-06-17T11:00:18","guid":{"rendered":"http:\/\/countingpips.com\/?p=91486"},"modified":"2016-06-17T07:00:18","modified_gmt":"2016-06-17T11:00:18","slug":"traders-stand-to-profit-big-on-brexit","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/06\/traders-stand-to-profit-big-on-brexit\/","title":{"rendered":"Traders Stand to Profit Big On Brexit"},"content":{"rendered":"
June 17, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Traders<\/p>\n

In January, I predicted that 2016 would be the year of the trader<\/a>, driven by heightened volatility.<\/p>\n

After falling more than 11% at the start of the year, the Dow Jones Industrial Average is now up 13% off the February market bottom.<\/p>\n

However, volatility still abounds. And in addition to it, the odds of further interest rate hikes in the U.S. have also nosedived as the Fed dodges the issue time and again.<\/p>\n

Every time the Fed meets, hopes of a rate hike become increasingly bleak, rattling the nerves of investors all over the world.<\/p>\n

I also anticipated that oil would find its footing and reward opportunistic traders with outsized profits.<\/p>

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That\u2019s also come to pass. Since the start of 2016, crude oil has nearly doubled off its bottom on the year, and could still storm even higher.<\/p>\n

Indeed, the first half of this year has proved quite taxing for long-term investors. But it\u2019s also posed great opportunities and subsequent yield for trend traders.<\/p>\n

In fact, it\u2019s looking like the second half could be even juicier than the first\u2026<\/p>\n

A Trader\u2019s Best Friend<\/h2>\n

Most investors view the stock market in terms of fundamentals, concerned primarily with a company\u2019s revenue growth, and how sales translate into profits.<\/p>\n

More specifically, however, investors focus on how a company\u2019s growing wealth benefits its shareholders.<\/p>\n

This very mindset lends itself to a long view and requires great patience in order to realize profits. And these days, long-term investing demands an iron constitution.<\/p>\n

Traders, on the other hand, are much more nimble, with inherently shorter investing horizons.<\/p>\n

The most successful traders take a market-neutral approach to making money. That is, they\u2019re able to profit both by going long or short stocks \u2013 in bull markets and bear alike.<\/p>\n

Above all, traders capitalize on stock momentum and market trends rather than the contents of a company\u2019s financial statements.<\/p>\n

Generally speaking, everything a trader needs to know is represented in the charts.<\/p>\n

This is why, when market action gets dicey and stocks become detached from their fundamentals, traders often have the advantage due to their possession of a more instinctive and well-rounded set of skills.<\/p>\n

Heavy Seas Ahead<\/h2>\n

As you know, the Fed voted to leave rates unchanged and even lowered its hike outlook for the rest of the year.<\/p>\n

This comes as no surprise to most investors following May\u2019s dismal jobs report.<\/p>\n

But, with the June FOMC meeting in the rear view, the markets are positioning themselves ahead of next week\u2019s crucial Brexit vote.<\/p>\n

Investors are already yanking their money out of the markets.<\/p>\n

After rallying from February to May, the Dow has fallen 2% in the last week alone.<\/p>\n

Plus, the Volatility Index (VIX), better known as the market\u2019s fear gauge, has leapt by 40% over the same period.<\/p>\n

According to financial technology company Fidelity National Information Services (FIS), U.S. stocks could fall another 5% if the United Kingdom votes to leave the European Union. The company also estimates that volatility in stocks could spike by 50%.<\/p>\n

Yet, if the country votes to stay, market sentiment could shift and stocks could easily rally to new heights.<\/p>\n

The bottom line is simple: The Brexit vote could make for one of the best trading opportunities of the year.<\/p>\n

Stay tuned. Next week, I\u2019ll reveal one of the most attractive targets.<\/p>\n

On the hunt,<\/p>\n

Jonathan Rodriguez<\/p>\n

The post Traders Stand to Profit Big On Brexit<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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By WallStreetDaily.com In January, I predicted that 2016 would be the year of the trader, driven by heightened volatility. After falling more than 11% at the start of the year, the Dow Jones Industrial Average is now up 13% off the February market bottom. However, volatility still abounds. And in addition to it, the odds […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-91486","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=91486"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91486\/revisions"}],"predecessor-version":[{"id":91502,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/91486\/revisions\/91502"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=91486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=91486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=91486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}