by Gavin M.
No doubt you may have already seen a countless tape bombs that have dropped today on Greece and the Eurogroup. Greece has decided to do a referendum instead of accepting the institutions' proposal. Once they announced this, the Eurogroup quickly rescinded their proposal and decided to carry on without Greece.
Because of the expected volatility into this weekend, we did our best to recommend being all cash to all of our clients. At the end of the day, of course, it boils down to them on what they think they should however, uncertainty breeds panic and that usually leads to volatile reactions to headlines. If you are currently in a subscription where they told you to keep buying into the hope of a deal, you might want to think about switching.
There are countless newsletters out there that offer to help investors and traders. If they did their job right, they would caution their clients into this weekend's events as it can be perceived either way. This truly would be the best course of action - to be in cash and keep your powder dry.
Already we are seeing a few forex brokers limiting access to the EUR trades tomorrow as they are unsure of how big the swings will be. We have all been here - the January carnage of CHF traders as the SNB abandoned the well-defended floor.
The best thing you can do as a trader in times of crisis is to be nimble and prudent. It does not mean you shouldn't make a lot of money - it should mean you properly strategize your entries and exits into these trades because you never know which central bank is going to be against you.
If you find yourself taken out cold on your EUR long by Monday, perhaps it is time to take a step back and maybe go back to basics. IF you don't have a good trading foundation, you are not going to survive the coming storm. Always remember, we are here if you need us. :)
Traders from Equity Sense will be writing on this blog on positions and other market-related things.