While most of you are focused on Cryptocurrency, where economic events are mostly non-existent, most other asset classes react to various events. If you seriously want to trade forex and explore other asset classes, I would recommend you learn more about how to trade & safeguard yourself during economic events. I know most of you do not trade Foreign Currencies but I want to recommend learn to Trade FOREX anyway just as an alternative to Crypto to keep yourself busy during the days when Crypto Market barely moves.
Download Metatrader 4 App from AppStore / PlayStore & trade forex for fun:
Now go to settings & Click New Account & Click Start Without Registration. You will instantly get access to a DEMO Practice Account.
You will see various currencies that include GBPUSD. Now your focus should be to observe GBPUSD for the next 72 hours. You can apply your TA knowledge & trade forex too just for fun but the main idea is to show you how events like BREXIT Vote impact Currency Markets.
Let’s discuss the type of events that affects the currency market in General:
- Regulatory Intervention: This is one of the major risks for almost all asset classes but more so for Foreign Currency Markets. For a Surprise change in interest rates may send the currency prices in a tailspin. Mostly such events are well-publicized but it’s better to stay safe & avoid trading during such events as asset price may react violently during the announcement itself
- Economic Data Points: Events like GDP Numbers, Consumer Price Index, Non-Farm Pay Roll may create two-way volatility in asset prices. It’s safe to stay away during the first few minutes of the event until the market finds a direction.
- Special Situation Events: BREXIT Vote is a special situation event. It doesn’t happen every day. But when that happens the market may brace for unusually high volatility. Unlike Crypto, Forex markets don’t move 10-20-100%, A move for 1-2% is considered significant & 5-10% is considered huge. However, returns in Forex Markets can be significant as most traders use High Leverage.
- There are other events too which may affect Asset Prices that I will discuss in a separate article
So if you are keen to learn how special situations like BREXIT Vote can impact Foreign Currency Market across the board & GBPUSD in particular, download MetaTrader 4 App from AppStore / Playstore & Open a New Account without registration & observe & even play GBPUSD in demo mode for next 72 Hours. It will be interesting to learn something new.
I will write a separate article on how Events impact asset prices for other asset classes including commodities & stocks
BREXIT Vote is likely to take place at 7.00 PM UK Time with results to be out around 8.30 PM, Keep an eye & learn to trade & safeguard yourself during such events. My personal recommendation is to stay away for the first hour until the direction is clear, but you can still play DEMO Accounts to learn how to trade forex.
Write me about your experience later on Twitter @tradingroomapp