Market Updates

S&P Daily Pre-Market Prep 6/24/16

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An interesting day ahead for sure. I'm sitting to one side but instead of explaining why, let me relate a story to you.

A London based trader called me yesterday and asked how I'd approach the market if there was indeed a Brexit. I told him it's best avoided for various reasons. Mostly because of the brutal pullbacks that occur at volatile periods like this.

Now - as I mentioned, this guy is in London, so he stayed awake late and traded once the count started coming in.
 
He called me today at 11:30am London time - after a night without sleep (apart from falling asleep at the mouse once). The upshot of his trading - he didn't lose any money. He also didn't make any money. His broker made money with all the trades he did. But he broke even.
 
Basically, the brutal pullbacks took him out, even though he was right about the direction.

So if you do plan to trade today - keep this in mind! Last night might look easy on your 15 min

He's French too - so I told him he'd better pack his bags and get out of Dodge ;-)

Pete
 


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Posted by Peter Davies on June 24, 2016
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