Feb 19, 2008

World Event Trading: How to Analyze and Profit from Today's Headlines

World Event Trading: How to Analyze and Profit from Today's Headlines
by Andrew Busch





Pestilence, natural disaster, and acts of terrorism are each unpredictable
in timing, location, and scope. None, however, is unpredictable
in its effect on the world’s financial markets.

An immense window of profit opportunity occurs when there is liquidity
and price dislocation. Traders and investors in the thick of market upheaval
often are not able to seize the opportunity, simply because they do not
understand what is happening. Understanding the complex relationship
between a global event and the collective market psychology at the time
that the event occurs is crucial.

This is the essence of world event trading (WET).

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