The Brexit...How are you Forex traders dealing with it mentally?
It seems to me that this whole Brexit deal may wreak havoc on the currency markets. How do you analyze what to do and what to anticipate from such an upcoming event? I don't think I could stand it. I have never witnessed a major market flutter other than on the futures side last year in August when China went agog about their own currency, and then again in January of this year when they went agog again. But that was commodity and equity futures, not FX. Are you Forex folks bracing for what many peeps are saying could be very severe volatility? How does one plan for that? Should one just stay the heck out of the markets with this sort of thing coming down to bear on the world?
Not sure what that means. Buy what instrument at what straddle? (I'm a commod futures trader, no experience with FX aside from some dabbling a couple of years ago. But I can imagine the craziness that may ensue with this insane UK referendum vote).
Others may have a strategy to play the volatility but I'm staying away. I think that there is tradeable volatility and noise, and to me there is just too much noise in the pair. I'm not planning on even considering a trade in GBP until the dust has settled the week after the vote. Many brokers are tightening leverage on GBP pairs in advance of the vote to prevent another debacle like what happened when the Swiss central bank removed the currency floor last year.
The following user says Thank You to MWG86 for this post:
I have taken a few trades. You have to adjust to the large volatility. I have an alarm set that goes off when the 5 minute 20 ema separates from price by 15 or more pips. This alerts me to a possible big move. When a new poll comes out you can get a big up trend followed by a complete reversal.