Brexit surprise leads to volatile action

Markets do not like surprises. The market was expecting a "re main" win. It had rallied a day earlier in anticipation of that.  But once the "exit" vote came in there was wide spread selling.

The Stockbee Market Monitor had a huge 1599 down day. Days above 1500 on downside are extremely rare.

But one day does not make a down trend , follow through selling is key. Typically such  big moves triggered by macro events recover in few weeks once the volatility drops down. In short run expect a bit of volatile action.

Market has been stuck in range for last 2 years. Every time it had a correction it has bounced back but has been unable to break above the range convincingly. If in few weeks market shrugs off Brexit based selling and recover it  might set it up for a range breakout. 


How to improve your trading

Do your own analysis, build your own analysis, develop your own rules and go the extra mile...
1 develop your own scans , entry , exit , risk method after studying or copying others approach.
2 Post your own market analysis on Timeline after close. When I was beginner I use to write my own analysis of market after close and then compare it to IBD big picture analysis.
3 know your method in detail. you should be the ultimate authority on your method, your scans, your risk management, stop and so on... explain it to others, it will help refine and clarify your own thinking
4 Study the best traders in the market and incorporate their learning's. study what is their setup. study their time frames, entry , exit , risk and then use that as raw material for your own method.
5 remember most successful traders had learning curve of 5 year plus. It took Jesse Livermore 10 years to put all elements of his trading together.
Once you get your method in place just 3 to 5 years of superior returns can turn your life around.
The key word in trader development is self efficacy SE . SE can only be achieved through mastery experience. strive for that in your trading journey...