2 factors that affect market

Election and trading
One of the factors that can have an immediate impact on global markets are elections. This is especially true when the election is for a major economic power such as the US, Germany, UK or Japan.

Market volatility can begin weeks or even months before the election and can be fueled by major surveys or statements. Events related to the election – such as the announcement of a legal investigation relating to a specific candidate or party – can also have a direct impact on market volatility. Often, volatility begins well before Election Day and it can rise even after the announcement of the winner, especially if the results are viewed as surprising.

Want an example? Well, thanks to President Donald Trump we have a great one. His victory in the US Presidential Election in 2016 was pretty unpredictable and caught the market by surprise. What happened? Well, just look at the chart below, featuring the EUR/USD. When the results were first announced, uncertainty swept through global markets and the USD fell. A few hours later though, investors have recalculated the possibly beneficial effects of having a Republican, pro-business President and the Dollar bounced back.

You might think that such events are useless, since - after all – the Dollar’s fall was followed by a quick increase. But remember: For online investors, any change in price can be viewed as an opportunity. You can always choose to short or long your position, potentially taking advantage of any change in price. Traders who opened and closed their deals at the right time, could have benefitted from this temporary drop and surge.

If you like to learn more about different strategies traders employ, view our Technical Analysis page or learn about Market Sentiment.

do you also dont want to lose your money while trading ?

click here ~tinyurldotcom/f33wjb2t (copy this link and paste to new tab and remove "dot " and aaply actual "." )