FTSE 100 STOCKS INDEX LIST

Brexit Effect on FTSE 100 Index?

Brexit is the withdrawl of the UK (United Kingdom) from the EU (European Union). There was a referendum that took place in June of 2016. 52% of the people voted to leave and 48% voted to remain in the EU. Brexit has officially taken place on January 31, 2020. Prime Minister Boris Johnson's Conservative Party won a victory back in December 2019 during the general election.

Brexit didn't seem to phase the FTSE 100, since the market skyrocketed until around February 20, 2020 until the FTSE Index started to drop. So, what's up for the FTSE 100 after Brexit? Well, there's a new potential problem that has taken place since Brexit, and that is the Coronavirus. The Coronavirus has actually shook all markets worldwide, not just the Footsie. Read More

How to Prepare for Market Uncertainty

A lot of investors are wondering what to do now with all of the uncertainty that's taken place in the markets due to the Coronavirus. There's been a lot of panic which has caused the Footsie to take a huge drop. Work production has come to a halt in many countries, which causes rippling effects to markets around the globe.

If you're worried about your investments long term then it might be a good idea to talk to your financial adviser and discuss safer funds until the market turns around. Before you make a decision either way, it's important to look at the charts and look for reversal patterns. Don't fall for the hype of people saying the market is going to go up. It more than likely will, but it's a matter of when and it's dangerous to speculate. That's why learning the charts is so important to do.  Make sure to read our latest blog post: Will Coronavirus Crash the Stock Market?

How to Read the FTSE 100 Charts

When financial advisers say that the charts don't matter, they don't know what they are talking about. The chart of the Footsies showed huge warning signs of a drastic pullback when it was overextended in February of 2020. When price gets overbought or overextended, it becomes due for a correction. So, many of times major events are predicted in the charts ahead of time.

Obviously, the average investor doesn't know what the news catalyst might be but there's warnings of things to be concerned or cautious about. Especially going into an election year in the United States. The uncertainty of election years causes many investors to become cautious due to the uncertainty of who is going to become president of the US.

Whoever becomes president in the United States will have an effect on the Footsie as well as other markets around the world. Trade is very important around the world and the sensitivity of Brexit and US relations moving forward, so it's important to keep an eye on the charts.

So, the Coronavirus and US elections are going to play a part on the FTSE 100 for probably a lot of 2020. Watch for reversal patterns and see if the buyers are going to come in and hold support levels. Again, we can't stress enough the importance of learning how to read charts over listening to hype and speculation. ​

How to Trade the FTSE 100

There are several different ways that you can profit off of the Footsie. Two of the most popular ways are to trade options and futures. Options give you several different ways to capitalize. As the Footsie declines, you might look at naked put strategies, put debit spreads, or call credit spreads. 

When the FTSE 100 has reversal patterns, you might decide to go long and do naked calls, call debit spreads, or put credit strategies. We teach how to trade these strategies within our trading service above.

Futures trading is also another popular way to make money trading the Footsie. $FTU is the symbol for futures. Futures trading allows you the ability to go long or short the FTSE 100. You can day trade or swing trade futures. Options and futures are both great strategies to make money both in bullish and bearish Footsie markets. /read]