HOW TERRORISM EFFECTS MARKETS
I HAD AN ORDER LAST NIGHT LONG AUD/JPY. I WAS TRIGGERED INTO THE TRADE OVERNIGHT WHICH IS A BIT OF PET HATE OF MINE AS WE SEE TIME AND TIME AGAIN THAT EUROPEAN AND US MARKETS SEEM TO REJECT THE ASIAN SESSION. HOWEVER MY CONFLUENCES ADDED UP WITH MY TRADING PLAN, I WAS IN.
UNPREDICTABLE AND UNFORTUNATELY FOR BRUSSELS THEY HAVE COME UNDER A SEVERE TERRORIST ATTACK AND THE MARKETS REACT TO THIS BY HEADING FOR SAVE HAVENS.
SAFE HAVENS ARE USUALLY:
YEN (JPY)
SWISS FANC (CHF)
COMMODITIES SUCH AS GOLD AND SILVER
WE CAN SEE FROM THE CHART BECAUSE OF THIS HORRIBLE EVENT I WAS STOPPED OUT. HOWEVER AS WE KNOW MARKETS RETRACE AND COME BACK TO PREVIOUS SUPPORT AND THAT'S EXACTLY WHAT WE HAVE SEEN HERE.
SO WHAT DO I DO NOW?
WHAT I DON'T DO IS REVENGE TRADE AND BUY WITHOUT CLEAR INFORMATION.
WHAT I WILL DO IS SEE HOW THE MARKET FINISHES UP TONIGHT. IF I HAVE A BULLISH SIGNAL I WILL SET AN ORDER UP AS I WOULD HAVE HAD ANOTHER CONFLUENCE ADDED TO MY SET UP.
UNFORTUNATELY AS TRADERS WE CAN'T LET EVENTS LIKE THIS CLOUD OUR JUDGEMENT. I ALWAYS FEEL GUILTY KNOWING THAT SOME PEOPLE HAVE PROFITED OFF THE BACK OF SUCH HORRIBLE EVENTS BUT AT THE END OF THE DAY WE CAN NEVER PREDICT THESE EVENTS.
IF YOU ARE IN BRUSSELS PLEASE BE SAFE. R.I.P TO THOSE WHO HAVE LOST THEIR LIVES TODAY.
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