Pfizer’s announcement on Monday that it had discovered an effective COVID vaccine caused price moves on a scale that are rarely seen. The fragmenting of asset groups was a stunning spectacle. Trading the news and the aftershocks associated with it can be profitable but it’s also essential to manage the risks.
A Good Time to Research the Markets
One of the common pitfalls for traders is over-trading. The adage is that some of the best trades you do, are the ones you don’t do. Sitting on your hands might not make you any money but it won’t lose you any either. Getting on the wrong side of trades on that very volatile Monday would have been very costly.
The advice to apply patience can be particularly important at times of market shocks. Shocks like the one seen on Monday when Pfizer announced it might be in a position to help economic and social activity return to pre-COVID levels.
How do Professionals Trade the News?
The public perception of professional traders will be that they were frantically trading the news and having a turbo-charged Monday afternoon. That would have been the case for some, mainly brokers, looking to match up buyers and sellers and trading volumes did spike. It’s always the broking dealing floors that television cameras head to when the markets are in turmoil.
Portfolio managers, the guys who make decisions on trading strategies, would have had a quieter afternoon. Many may have been trimming their books. There were also chances to buy or sell assets and enjoy the ride. But many of the pros would have been trying to weather the storm before making their next decision.
Learn from the Pros
As the Pfizer news blows over, the markets will be presenting a range of trading opportunities. Prices will be trading with a degree more volatility but will not be subject to such explosive moves.
As the key to trading is timing entry and exit points, it’s worth developing habits which support that approach. Tapping into quality research is a win-win. Not only does it discourage over-trading and encourage optimal trade timing, it also helps boost understanding.
Finding the right kind of research can magnify the gains. Pepperstone has for a long time offered clients access to research which is very trade-orientated. They can’t and don’t provide investment advice, but the research is particularly useful as it tends to cover real-time markets.
New Research from Pepperstone
Keeping ahead of the game Pepperstone recently provided webinars in a series entitled ‘Master the Trade’. It presented an opportunity for registered Pepperstone users to listen to three expert traders from Corellian Academy talk strategy, technical analysis and trading psychology. It also has a Q&A section.
With markets moving as dramatically as they are at the moment, developing skills associated with analysis and trading psychology is an excellent step to take.
The standard research offering continues to run and be trade focussed while the ‘Master the Trade’ series is an additional nice-to-have feature.
The Market Analysis section continues to go into detail on current situations. If you’re going to develop your understanding of trading, then live markets are the best classroom.
The new additions to the Pepperstone research and analysis package offer an extra incentive to head to the site. The unravelling vaccine-distorted markets will produce plenty of trading opportunities but conserving capital and staying in the game is the first step.
Any information contained on this Website is provided as general market information for educational and entertainment purposes only, and does not constitute investment advice. The Website should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. ForexTraders will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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