General Election

[meblun]

Hi All,

I was wondering if I could get opinions on trading the uk Market during the General Election?

I have traded political news in the past but I think I was just lucky😅. I'm more of a fundermental trader for mid-term.

I just wanted to know people's thought process when trading the news and what to look at before making a short term trade.

Any thoughts or opinions welcome!

 

[timsk]

Hi All,

I was wondering if I could get opinions on trading the uk Market during the General Election?

I have traded political news in the past but I think I was just lucky😅. I'm more of a fundermental trader for mid-term.

I just wanted to know people's thought process when trading the news and what to look at before making a short term trade.

Any thoughts or opinions welcome!

Hi meblun,
Election results can move markets - that's for sure. So, there's opportunity. If you're approaching it from a fundamental perspective, then you'll examine evidence that leads you to believe one party defeating another. If you're convinced of your analysis and know what effect it will have on the market - then you can trade accordingly. Or, you can just take a punt on an unexpected outcome. For example, if Marine Le Pen completes the hat trick of shock results (Brexit and Trump being the other two) to become France's new President next weekend - then I predict with some degree of confidence that by this time next week the streets of Brussels will be a quagmire of brown smelly stuff. However, besides laughing my cotton socks off, it's difficult to profit from that. Instead, I could short the Euro in the expectation that it will tank. Am I confident Ms. Le Pen will win and am I prepared to bet accordingly? No, I'm not. But some people will, and they'll bet their house on it and stand to make a fortune. Or lose big time and regret it for a long time to come!
Tim.