Financial market trading specialists shudder in their shoes when hearing the term “Brexit.” According to senior financial expert Tony Hopkins at Wilkins Finance, many traders have decided to pack up their trading gear and look for greener pastures. With politics in the UK in turmoil, many ask if they should be concerned about the transition that is due to take place. But before answering that question yourself, it is important to know what exactly Brexit is and what it means for the rest of the world.
What will happen Once Brexit Starts?
The UK has completed a vote to leave the European Union and have decided to do so in 2019 at 11pm on Friday 29 March. These two political institutions have agreed on a few separation issues of the amount the UK is in debt to the EU, what is going to happen to Northern Ireland as well as what is to happen to UK individuals residingin the EU and EU individuals residing inthe UK. This, of course, has sent shock waves throughout the world, creating a highly volatile financial market – something trades need to tread carefully.
There is no need to worry as you won’t need to have a special set of skills to be able to trade the markets successfully, even though the markets are fluctuating due to this geopolitical crisis. With that said, it is important to analyse how the market has changed and adjust accordingly, otherwise, you might just be left behind choking on trading dust. With traders stepping on hot coals while still wanting a piece of the action, here are a few key pointers to take into account when trading with Brexit in the back of your mind.
Keep Trading the Most Active Markets
It’s essential in low, unpredictable markets to keep trading the most popular markets. For instance, as a Forex trader, it’s best to adhere to the most active money pairs as more individuals will be engaged in these markets, making it perfect for your trading procedures.
Keep Trading According to your Strategy
When trading, you need to be consistent. After all, that is what brings a trader to his or her success. Keep trading according to the strategy you have developed before Brexit came into the equation. Once you see significant changes in the market, you can adjust your strategy accordingly.
Keep your Trading Executions Low
As this time will cause huge fluctuations in the market, it is best for traders to keep their trading capital spent on one trade at a low amount. This will give you the chance to still make a portion of profit, even when your trade goes south.
Do not become impatient
Becoming impatient with the turnout of geopolitical circumstances won’t help your trading ventures. If all, it will cause you to make irrational decisions, causing you profit you could have otherwise gained. Wait for the right moment to execute trades, even if it means keeping a closer eye than usual on what goes on in the trading world.
Keep your Timing in Check
Should Brexit not exist, traders normally choose low timeframes when executing trades. However, in Brexit times, it is best to concentrate on higher timeframes of trading. By doing this, a trader can concentrate on what is going on in the market without a lot of traders making trades around that time. It also gives you a good indication what the market will do next, potentially giving you higher profits.
Geared with these tips on how to survive in a Brexit trading world, there is no need for you to be concerned right away. Although there are many issues that still need to be addressed I order for Brexit to take effect, extra caution should be incorporated when trading the market. Remember that trading the financial markets is a long-term way of generating profit and with it, many issues across the world will impact what the market does. For a trader that stays in the game for the long haul, moving with change is the only way to stay profitable.