Today’s market action was great, but proves the need for solid trader risk management

Donald trump wins the US election. Stocks fall hard……and then the DOW rallies to near all time highs.
Wild moves that no one anticipated. It’s a great time to be a trader IF you can keep your risk managed effectively.

Well the unexpected happened, Trump won and the markets fell sharply, S&P 500 futures hit the circuit breaker limit as did Nasdaq futures. But that was just the beginning………the DOW then rallied hard to trade at an all time high. USDJPY was trading near to 101, turned and traded up just shy of 106. Gold, Bonds, Peso, the list goes on……

The analysts got it wrong, the consensus was wrong and that seemed to fuel the fire in both directions. The markets reacted wildly, proving that anything can happen in this game, you’ve got to stay flexible and risk management is so important.

What a great time to be a trader.