This election is a colossal embarrassment. I don’t expect anything to go smoothly tomorrow and the media is priming everyone to believe that Clinton is all but assured. Markets hate surprises. If Trump looks competitive at any point tomorrow, then it can be a major catalyst for unwelcome volatility.
Most Tier 1 banks are reducing leverage ahead of the election. They rarely do that just for show. The chances of volatility popping sky-high are, well, sky-high. You’d do well to lower your market exposure accordingly.
A quick note for Dominari Traders
I’ve done the same in Dominari. I reduced my account leverage from 18:1 down to 3.5:1. It’s enough to keep me trading so that I can continue to monitor how Dominari performs. I’d rather miss out on profits that walk in front of a freight train.
Speaking of, I owe everyone a quick update on my trading performance.
You know what sucks about trading? Drawdowns.
You know what’s awesome about trading? Pushing out of drawdowns.
I took a solid punch on the nose right at the end of September, just as my copy-follow traders came on board with my new higher leverage. In a perfect storm for myself and them, I increased the leverage from 7:1 to 18:1 just in time for the drawdown to take hold.
What impressed me most was the 95% of the traders taking my signals stuck through the initial bumpy period. To them I say, “Bravo!”.