After weeks of talking about Brexit, apparently the market still wasn’t ready for it.
Today is shaping up to be an ugly, volatile open. There is a lot of danger to trading these opens if you’ve never done so before. The trading books just don’t prepare you for this. Here are a few lessons I’ve learned over the years.
1. The whole system gets clogged up and runs super slow
You would think the world’s leading financial market would be a well oiled machine. It is, but not in situations like this. Your broker’s platform and site will be running horribly slow for quite some time.
2. Less is more
There always seems to be a world of opportunity when the markets are going haywire. I’m a firm believer if you’re trying to trade in such a mess, just try to make one good trade.
3. Absurd prices will be seen
The opportunity to take advantage of panic and algorithms going wild will be there. You just have to be prepared with a proper scan and do some homework on stocks you really want to own.
4. Only enter your orders once
Again, the system backs up and gets real slow. You may not get a confirmation for 20-30 minutes depending on your broker. That doesn’t mean your order didn’t go through!
5. Stay calm
It always pays to stay calm in an emotional environment. The calmer you are, the greater your chance to make money.
Trade ’em well!