The recent actions by the US government bode poorly for the big tech companies. Because for the first time in many years, both political parties have set themselves the goal of reducing both the size and power of the major players in the sector, namely Amazon, Microsoft, Google (Alphabet Corporation) and Apple.
Why are political enemies allying themselves with some of the greatest members of the tech sector?
The why isn’t as important as the when, but the main reason politicians are scorned seems to be some sort of universal dislike for companies that may have gotten too big or too successful in the eyes of Democrats. Regardless of the different motivations for killing big tech, the results are almost certainly not going to boost stock prices in any of the companies concerned. How can ordinary investors benefit from the problems of big tech? There are numerous options.
Some aim to use short selling techniques and direct Profits from falling prices. Others are taking a more optimistic approach, trying to invest in companies that could do well with bit-tech companies under regulatory oversight. Here are four key things to keep in mind as the fate of the big tech companies prepares for the hard sledding.
Have the right tools
The first step in capitalizing on a market sector that may be on the verge of implosion is having the right tools. Even those new to investing and trading can take part in the promotion as they have reliable, easy access to speculative markets such as Forex, Futures, CFDs, and others. For example, working with a broker who has a proven track record in customer support and a powerful trading tool like the like MT4 platform are all you need to get started.
Of course, it makes sense to have everything in place before the big news hits. What headlines and announcements would you like to see? Any official announcement by the government that antitrust lawsuits will be filed, Congress prepares to pass new laws that would effectively crush large tech companies, appointing anti-business agents to high-ranking positions in the DOJ, FTC, or SEC (as discussed in the first months of the Biden administration) and any kind of official sanctions against certain companies or groups of companies.
Instead of trying to short the big tech stocks, consider a more positive approach by looking for companies that could benefit from the tech giants’ fall. It’s no secret that companies like Amazon, Microsoft, and others have dozens of eager, much smaller, competitors whose stocks would likely all see price gains if major players in the sector cracked down.
Consider day trading
Day traders often have one Ability to generate profits in up, down and sideways markets. How do they do it and what can that skill mean for those who want to benefit from the fall of big tech? Historically, corporate reorganizations and collapses mean an early decline, a rebound, another decline, a minor rebound, and so on.
Each new breakdown tends to be followed by a smaller but cyclical increase. Day trading strategies simply play with the swings, sell just before the dips and leave long before the dips. For traders who like to be active on a daily basis and use major headlines and political trends to make small profits multiple times per session, day trading can be an ideal way to get involved.
It is not always possible to trade forex based on news about a company or two, unless those companies are global giants with thousands of employees and inflated profits. Forex traders almost always closely follow government economic and regulatory news. When a company as large as Alphabet or Apple publishes a positive earnings report, the impact on the forex markets can be huge.
The trick is to wait for bad or good news and watch how different national currencies react. In the case of large US-based tech companies, bad news can have ripple effects, making it difficult to predict how a single national currency will play out. The technique is all about watching and waiting which direction your favorite forex pairs are going and then Placing trades corresponding.
For any trader, knowing what is likely to happen, even a few days or weeks in the future, can be a great opportunity for making profits regardless of whether the news is positive or negative.
Where to find the latest tech investing tips online
Whether the market is good or bad, there are always companies and professionals who continue to make money in both scenarios. This is why it’s always so important to make sure you’ve covered all of your basics and also know what new trends and industry changes might be on the horizon.
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