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Viewpoints of Psychology Trading on Brexit Situation

by Didimax Team

The viewpoints of psychology trading is always interesting to know. It is especially related to several moments which are happened lately in a foreign exchange industry.

As you know that the latest issue happened globally becomes an essential catalyst before a trader decided to take an action. That is why; they always try to be updated all the time. 

One of the moments which have a strong impact is Brexit which stands for British Exit. This moment really creates many changes in the market. It is not only the currencies, but also people’s reaction. 

If you are a beginner trader, it is important to learn about that. So, below are viewpoints of psychology trading about this Brexit. Check this out and note Every information. 

 

What is BREXIT

Brexit, or British-Exit, refers to the process of Britain leaving the European Union after 47 years. That was in the economic and political alliance of European countries built after the Second World War.

At the end of June 2016, you must be remembered that the stock marker was experiencing a panic sellinh. The viewpoints of psychology trading about that moment was delivered by many analysts. 

The cause was a referendum result which stated that British want to separate their area from European Union. As predicted, that moment brought various impact. 

The example was when GBP/USD felt to it’s worst level since 1985. This made a lot of investors and traders confused why market participants could be that worry.

The Viewpoints of Psychology Trading on Brexit: a Rare Event

The decision made by British to leave European Union is a rare event actually. It means that the action like this is rarely happened before where then people will think that it is impossible.

This Feedback is also known as underestimating the likelihood of rare events. Since it is rare, the probability to happen is suite small. However, it doesn’t mean that it won’t be happened. 

Although the probability is small, it may still occurs. If you could see, market participants are so confident by believing that British will not leave the European Union. 

That can be seen from the stock market and rocketing Poundsterling some days before the referendum. However, since everything is possible, that action was them occured.

People Were Not Rational in That Time 

The viewpoints of psychology trading for this case is quits funny. Based on a polling in that time you could see that Bremain group (supporters who want British to be in European Union always) and Brexit was actually balanced.

Further more, some polling stated Brexit was only a little bit higher. However, market participants were not aware in that time. They even continued to push the stock market to move higher. 

From the polling result, they should be aware because Brexit could occur. Unfortunately, they were not rational in that moment. They underestimated this probability.

They Regret Every thing Then

When British exit was truly happened, the viewpoints of psychology trading had an explanation for that. Market participants really regret everything which then they reverse the direction. 

That is why; panic was the only effect in that time. Poundsterling then slumped and came to it’s lowest level since 1985.One thing to learn is that always understand the market behavior. 

Don’t forget to prepare a solution to face that. One of them is by joining the best forex broker only. The complete features that it has offer the great anticipation for every situations 

The example is Didimax forex broker which gives the low spread with a competitive price. It has a direct market access and millisecond speed which means really fast. 

So, join this broker right now and don’t worry about anything since it is legal under the BAPPEBTI regulation. You are ready to experience the viewpoints of psychology trading with Didimax. 

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