You need unflappable nerves in a volatile market
It's a stormy market at the moment. A great trade can turn into a mistake in minutes.
It's not even the headlines driving it. Cable has been particularly tricky with three days of 50-70 pip drops followed complete reversals.
Why is it suddenly so volatile?
The short answer is that the Bund trade is unwinding. That's clearly the market driver at the moment.
The longer answer is that volatility feeds on itself. Volatile markets leave traders uncertain. In this case, they've grown uncertain about the US dollar trend.
Rather than buying dollar dips or holding steady through headlines, it's become a case of piling in and rushing out.
What's the right mindset for trading volatile markets?
Great traders love volatile markets because they can keep a cool head, watch levels and dispassionately execute. Warren Buffett wrote billions in long-term S&P 500 puts at the height of the crisis.
If you do one thing this week to help you better understand what's happening in market; it's to sign up to his webinar on Thursday.
His first webinar on Tuesday was filled to capacity. But it was really the primer. The second part is where the real guts of the presentation begin. It's at this time tomorrow.
Check out the details at (https://education.forexlive.com/webinar-signup) and sign up. It will be the best investment you make this week.
