#185: The Brexit and Trading News Events

Podcast: The Brexit and Trading News Events In this video: 00:29 – Britain leaves the EA – surprise Brexit news 00:50 - Safer not to trade that news, big spreads and uncertainty 01:30 – GBP pairs retraced then stalled 01:50 – Selling the GBP/AUD and the GBP/NZD 02:20 – Confirmation following indecision 02:40 – Lessons from the Brexit news 03:08 – Trade what you see, look for opportunities 03:50 – Strength in the commodity currencies 05:07 – Watch out for the EUR pairs if more Countries follow the UK Did you enjoy watching the Brexit news unfold last week? If you did, and you'd like to know more about that, and also how to trade any major news event, listen up, I've got some great news for you. Hi Forex traders, its Andrew Mitchem here, The Forex Trading Coach today. It's Friday the 1st of July. Britain leaves the EA – surprise Brexit news A week ago, we heard the Brexit news out of the UK. Quite unexpectedly, Britain decided to leave the EU. Just before that happened, the British Pound/US Dollar reached a high for the year. Then, of course, as the news came out, and because it was unexpected that Britain was to leave, then, of course, the British Pound crashed against all currencies. Safer not to trade that news, big spreads and uncertainty It was a real roller coaster. It just crashed. It tumbled. The brokers prior to that event had given us plenty of warning to say, "Look. Leverage. It spreads." Et cetera. It's going to be hard to trade, and it was safer not to. Personally, I didn't trade on Friday at all. Then, on Monday, when the market opened, we had some huge opening gaps. That is to be expected because, of course, there'd been even more fallout over the weekend. I didn't personally take any of those trades. Spreads were massive. It was just too difficult, and too uncertain to trade at that time. GBP pairs retraced then stalled Then, what we've seen recently over the last couple of days, is we've actually seen the British Pound retrace. It's actually pulled back again. Then, just a day or so ago, it then pretty much stalled. It pulled back and retraced, and it was showing a lot of indecision, as in the pull back, the retracement doesn't look like it's going to go any further. Selling the GBP/AUD and the GBP/NZD In fact, right now, behind me, I've got two trades open, selling the British Pound, Australian Dollar, and also the British Pound against the New Zealand Dollar. Both sell trades, both looking very good, both in excellent profit right now, as I'm making this video and podcast. What I've seen there, is the British Pound crash against the Aussie and the Kiwi, and as mentioned, has then pulled back. The British Pound's done this against all currencies, but it's this pull back, and it looks like its then, not going to pull back any further, at this stage. Confirmation following indecision I've then got confirmation to go short, as in to sell again, and that's the new ride that I'm on right now, the new trades that I'm on, looking to take that British Pound/Aussie, and British Pound/Kiwi further down, again, back towards last week's lows. Lessons from the Brexit news That gives us ... I suppose there's a few messages in there. One, you don't have to trade all the time. Two, if the market's not showing favorable conditions, don't trade. Three, wait and be patient. Wait for the good set ups, don't force trades to happen. Don't, because everybody else is jumping on a big sell trade, don't just take a sell trade because of everybody else is doing it. Don't have that sheep following mentality. Trade what you see, look for opportunities Trade what you see.