“Anticipation, anticipation, it’s keeping me waiting”. The great Carly Simon hit (and Heinz ketchup commercial), is a wonderful way to explain how I view market events like Brexit. So for the questions that I have received about Brexit —
I learned long ago that to succeed as a trader, you need to always be prepared and to have a plan. That way you can ANTICIPATE market moves rather than REACT to market moves. And that way volatility can become your bestie , instead of being your mortal enemy.
So even tho I find it hard to believe that “they” will allow a Brexit vote to win, I’m not wasting time attempting to decipher what the market effects will be. I view Brexit the same way that I do as with any upcoming known event. That is, as a potential opportunity to take the other side. And that depends on the overall TREND of the market. Another words, if I believe a market is in an uptrend and technically bullish, and then the event “causes” the market to sell off, I will potentially buy into the selling wave. But only if the market reaches price levels which I have identified as low RISK entry points.
And I have fairly extensively covered my outlooks for the various markets in my previous posts, so folks can refer to those for price levels. But just to add that I have seen nothing to change my mind about any of the markets, except possibly the US$. But I’ll cover that in another post. There will be plenty of volatility around Brexit, but if you’re prepared and have a plan you won’t be freaking out, or at least you shouldn’t be freaking out.