http://www.ProfitableTradingTips.com - Increase in Consumer Credit - The recent increase in consumer credit in the USA is widely credited to growing consumer confidence. What does an increase in consumer credit mean for stock traders? Successful stock trading requires a sense of where the markets are going. Traders gain perspective by means of both technical and fundamental analysis of stocks. They also follow both broad and specific economic indicators. Here is where an increase in consumer credit comes into play. Hopeful consumers are willing to buy consumer goods on credit, purchase new homes, buy new cars and do a myriad of things that require credit. More consumer spending translates into more sales, more manufacturing, more transportation, and more economic growth.

1. BY
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

2. THE RECENT INCREASE IN CONSUMER
CREDIT IN THE USA IS WIDELY CREDITED
TO GROWING CONSUMER CONFIDENCE.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

3. WHAT DOES AN INCREASE IN CONSUMER
CREDIT MEAN FOR STOCK TRADERS?
SUCCESSFUL STOCK TRADING REQUIRES A
SENSE OF WHERE THE MARKETS ARE
GOING.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

4. TRADERS GAIN PERSPECTIVE BY MEANS
OF BOTH TECHNICAL AND FUNDAMENTAL
ANALYSIS OF STOCKS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

5. THEY ALSO FOLLOW BOTH BROAD AND
SPECIFIC ECONOMIC INDICATORS. HERE IS
WHERE AN INCREASE IN CONSUMER
CREDIT COMES INTO PLAY.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

6. HOPEFUL CONSUMERS ARE WILLING TO
BUY CONSUMER GOODS ON CREDIT,
PURCHASE NEW HOMES, BUY NEW CARS
AND DO A MYRIAD OF THINGS THAT
REQUIRE CREDIT.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

7. MORE CONSUMER SPENDING TRANSLATES
INTO MORE SALES, MORE
MANUFACTURING, MORE
TRANSPORTATION, AND MORE ECONOMIC
GROWTH.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

8. AN ISSUE FOR STOCK TRADERS IS
WHETHER TO TRADE INDIVIDUAL STOCKS
OR INDEX FUNDS SUCH AS THOSE THAT
FOLLOW THE S&P 500 OR RUSSELL 3000.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

9. IF IN INCREASE IN CONSUMER CREDIT IS A
PRELUDE TO ECONOMIC RECOVERY IN THE
US THEN A RISING TIDE MAY INDEED RAISE
ALL SHIPS, OR STOCKS, IN THIS CASE.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

10. RATHER THAN TRYING TO OUTGUESS THE
MARKET AND FIND INDIVIDUAL TRADABLE
STOCKS, TRADERS CAN TRADE A BROAD
INDEX FUND. IN DOING SO, THE TRADER
CAN OFTEN LIMIT HIS FUNDAMENTAL
ANALYSIS TO ECONOMIC INDICATORS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

11. BY USING TECHNICAL ANALYSIS A STOCK
TRADER CAN FOLLOW AND ANTICIPATE
CHANGES IN MARKET SENTIMENT.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

12. HE CAN OFTEN PROFIT BY TRADING INDEX
FUNDS AND NOT WORRY ABOUT THE
PERFORMANCE OF OR FUNDAMENTALS OF
INDIVIDUAL STOCKS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

13. THE CURRENT INCREASE IN CONSUMER
CREDIT HAS TWO BROAD IMPLICATIONS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

14. THE ONE WE HAVE ALREADY MENTIONED
IS THAT AN INCREASE IN THE USE OF
CREDIT GOES WITH INCREASED
CONSUMER CONFIDENCE.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

15. IT ALSO GOES WITH MORE HOURS ON THE
JOB, CONVERSION FROM PART TIME TO
FULL TIME WORK, AND HAVING PAID OFF
OLD BILLS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

16. THE CASH AND BARTER ECONOMY IN THE
USA IS REAL AND OFTEN NOT INCLUDED IN
ANY MEANINGFUL STATISTICAL REPORTS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

17. TO A DEGREE THE INCREASE IN
CONSUMER CREDIT MAY BE SEEN AS THE
TIP OF THE ICEBERG OF CONSUMER
WELLBEING.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

18. IF INDIVIDUALS SEE THEMSELVES AS
HAVING PUT THEIR FINANCIAL HOUSES IN
ORDER OR HAVE STASHED ENOUGH CASH
AND PAID OFF ENOUGH BILLS THEY MAY
FEEL SECURE IN BUYING CONSUMER
GOODS ON CREDIT.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

19. IT IS THIS SECOND INTERPRETATION OF
CONSUMER BORROWING THAT IMPLIES A
STRONGER THAN EXPECTED ECONOMY.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

20. WHETHER OUR SPECULATIONS ABOUT A
STRONGER THAN EXPECTED ECONOMY
ARE RIGHT OR WRONG MAKES LITTLE
DIFFERENCE, HOWEVER, TO THE
TECHNICAL TRADER.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

21. HE MAY SUSPECT THAT UNITED STATES
ECONOMIC EXPANSION IS GAINING A HEAD
OF STEAM.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

22. HOWEVER, HE WILL USE TECHNICAL
INDICATORS A GUIDE IN BUYING AND
SELLING STOCKS. HE MAY CHOOSE TO
KEEP HIS CASH OUTSIDE OF THE MARKET
EXCEPT WHEN SCALPING PROFITS ON
HIGH VOLUME TRADING DAYS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

23. MANY TRADERS USE STOCK OPTIONS AS A
TOOL FOR TRADING THE STOCK MARKET.
WHEN BUYING CALLS AND PUTS ON
STOCKS OR INDEX FUNDS THE TRADER
LIMITS HIS INVESTMENT RISK AND ALSO
LEVERAGES HIS CASH INVESTMENT.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

24. AS ALWAYS WE ARE NOT PREDICTING
ECONOMIC EXPANSION OR ANY SPECIFIC
DIRECTION FOR THE ECONOMY.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

25. RATHER WE ARE SUGGESTING A THOUGHT
PROCESS FOR TRADERS TO GO THROUGH
IN SEARCH OF TRADING PROFITS.
W W W. P R O F I TA B L E T R A D I N G T I P S . C O M

26. FOR MORE INSIGHTS AND USEFUL
INFORMATION REGARDING STOCK,
OPTIONS, COMMODITIES, AND FUTURES
TRADING VISIT
WWW.PROFITABLETRADINGTIPS.COM.