Political Factors

 

 

Political events such as a terrorist attack or a surprise downgrade in government debt can rarely be prepared for.  It is important that traders maintain agility within their approach to trading so strategies can instantly be adapted according to the global geo-political environment.

 

A political event can also be represented in financial news, such as government support packages for ailing economies.  Again, it is crucial a trader analyses the environment in which such stimulus is provided in order to place the correct trade.  The chart below represent a fall in the DAX after Germany announced a €50 bn support package; the DAX fell because the market was disappointed and was expecting more. 

 

 

 

 

 

 

The key stages to successfully trading political moves are :

 

- Get the news first - A variety of news feeds such as Reuters, Bloomberg and Dow Jones News need to be fully subscribed to and constantly monitored.

 

- Know how to act - Through training and experience understand quickly the impact the news will have on the products you trade.

 

- Push the button - Have the conviction to act on your judgments.

 

 

At Amplify our traders get access to the fastest news feeds and through our one-on-one training from experienced mentors they gain the knowledge and confidence to act.  The advantage our traders get from this support can be seen in the virtual trading room video.