As you probably know the upcoming ECB meeting and the outcome of the Greece Election have the potential to turn the currency exchange market upside down. We want to give you a heads up including some recommendations on how to make sure that you don’t have to be worry about your trading account(s).
The European Central Bank may start a new QE (Quantitative Easing) program to fight deflation in the EURO Zone. If they do, nobody knows how market participants will react to it.
Alexis Tsiparis, leader of the Greece left wing opposition has a good chance of winning the parliamentary elections. If he does, the "Grexit" (Greece exit from Euro Zone) scenario will be again actual and it is impossible to foresee how the market will react.
In combination, the ECB decision and the election in Greece could be a ticking bomb. In other words, it is possible that we will see a huge gap between the Friday close price and Sunday open price. Therefore we do recommend to halt trading temporarily or trade with reduce risk until Monday.
Disable auto trading until Monday and close open trades (if any) manually. If you do have a large basket open and do not wish to halt trading, it is recommend to monitor the trades.
Reduce the risk for today and make sure you do not keep any open positions over the weekend. Not to open any new trades and continue trading on Monday would be another possibility.
If you do have open swing trades and do not wish to close them, move the stop closer to the entry point and check the trade(s) before the market closes, and shortly after the market reopens on Sunday.
A question remains: will the market be hit by a CHF Shocker like Tsunami? Fact is, we don't know, but being a little bit extra cautious for the next days will be definitely a good idea.
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