forex signal system trading: This large cap tech company could deliver a gain of more than 90%

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A Short-Term Opportunity with Limited Risk

Over the past six months, the stock market has suffered a sharp decline and an equally sharp rebound. Both moves seemed to come as a surprise to many traders. The fact that both moves unfolded quickly highlights why traders need to focus on potential rewards, as well as the potential risks.

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Near the end of last summer, many traders expected the stock market to continue the up trend that had been intact for months. This is a typical reaction where traders expect the future to look like the past. Many were surprised by the sharp decline that developed in the fourth quarter.

Attitudes often shift with the recent market action and as 2018 many traders were expecting the decline to continue. Instead, a sharp rally began the day after Christmas. Now many traders expect it to continue. Of course, getting caught on the wrong side of the trend can be costly.

Rather than forecasting the direction of the next move, we believe it can be useful to hold positions that can benefit from an advance or a decline. This can be done with strategies that offer large potential returns while limiting the amount of risk a trader accepts as we explain in our latest article.

In the article, we have an example of a trade that could meet those objectives. The details of the strategy and the trade are in our latest free educational article that is available right here.

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