How War Moves the Markets: A Day Trading Perspective
Wars have historically been powerful catalysts for market volatility. As emphasized in How to Day Trade for a Living by Andrew Aziz, traders must understand that geopolitical news—especially war—impacts investor sentiment and disrupts supply and demand, triggering sharp price movements that can be exploited with a clear, disciplined strategy.
Conflicts often boost safe-haven assets like gold or the U.S. dollar, while sectors such as energy, defense, and commodities experience spikes in volume and volatility. In Market Wizards, Jack D. Schwager interviews traders who mastered the art of reading market sentiment during times of chaos. The lesson: it's not about predicting the conflict, but adapting quickly to the flow of information and price action.
The key is to avoid impulsive reactions and instead act based on tested setups and strict risk management. War doesn’t just move markets—it exposes who has a system, and who is merely gambling.