The U.S. dollar fell six days in a row last week, thanks to all the recent developments out of Washington. And of course – President Trump's ongoing feud with the Fed helps fuel the fire as well…
While this may leave many investors spooked, you don't have to let this uncertain future affect your trading game.
You can score big on the dollar – right now.
And it's as easy as this….
Options Are Key When It Comes to the U.S. Dollar
Now, before we get into your profits – let's talk about the basics…
A "strong dollar" allows the United States to buy more goods from a foreign country. This can be good for Americans who buy foreign products, like electronics or pharmaceuticals, because it costs less to buy them. On top of that, a strong dollar benefits those traveling overseas on business or vacation because it's less expensive to travel and pay for lodging, food, and transportation.
On the other hand, a "weak dollar" means that the United States can't buy as many goods from a foreign country. In turn, it becomes more expensive for Americans to pay for foreign products and to travel abroad. That's because there's less purchasing power than with a strong dollar, so Americans are left to make up the difference in prices on imported goods.
But there's a good side and bad side to both scenarios…
The Chance to Claim Your Spot on Millionaire's Row – Learn How to Get Your Share of This $1.4 Trillion Opportunity
When the dollar is strong, we can buy the things we need and want for less, which means we can get a lot more bang for our buck, so to speak. However, it costs more to manufacture U.S. goods overseas, which could affect the ability to sell these products. This could eventually lead to shrinking margins and, therefore, shrinking profits. And that could ultimately result in a loss of U.S. jobs due to halting, shutting down, or moving operations to another country altogether.
A weak U.S. dollar is often considered a bad thing because of the higher costs to export goods and services, especially overseas. But a weak dollar can be good in that exports can sell for much more. And the more that American companies can sell their goods at higher rates, the better the impact on sales and revenues. This not only keeps the companies in operation – it can also lead to growth and more jobs. And job creation is a great thing for the stock market.
But the truth is, there's only one way to trade in a volatile dollar market – and that's with options.
Here's what I mean…
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.