Last week marked the anxiously awaited Brexit vote. Many traders completely avoided the market while others stuck to their trading plans with tight stops and take profit levels. Going into the week we planned our positions carefully at Slick Trade and watch the market become affected early with volatility starting on Monday. The actual vote was on Thursday June 23, 2016.
What is Brexit?
So, what is Brexit and why did it cause so much anticipation? “BREXIT,” is a combination of “Britain” and “exit,” and is the nickname for the British exit from the European Union (EU) that was submitted to a referendum in the United Kingdom on Thursday.
Voters were asked if the UK should remain in the EU or leave.
The vote remained very close at 51.9% and the British decided to leave the EU.
Prime Minister David Cameron resigned immediately following the vote.
So, where were you?
I was personally watching the market closely prior to the vote and watched my positions closely following. It was amazing to watch the spikes in the market, especially the GBP. I have never seen a fall like that and it made NFP and FOMC news releases look like child play.
What’s to come?
This is a question that we are all asking. The one thing I definitely want to stress is to BE CAREFUL, watch your positions closely and be sure to set realistic stops and take profits. It’s important and it’s hard to tell what may come. With a fall like that from the GBP and changes with many brokers in margin allotment, it’s important for forex traders to reevaluate their trading plans and make sure that they are trading appropriately to their account size. Proper risk management is always key but in the upcoming weeks, we should all spend extra care.
Weekly Recap for Slick Trade Members
On Monday, the Prediction and Analysis for Sapphire members started with some strain on positions. The market was saw some inconsistent volatility throughout the week but stayed within consolidation parameters sticking to the usual rules of supply and demand zones. The Brexit vote caused spikes in the market that many of us have not seen in the past. The GBP and EUR dropped heavy and quick. With shorts on both pair from the start of the week, we saw the positions make their gain and ended the day with heavy profit. I was also very excited to see that USDCHF finally headed to the upside. With almost two weeks of heavy consolidation, I was able to close out of multiple long positions.
I was another solid week in the room and a definitely a weekend to celebrate and relax!
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