Trading The Psychology Of The Russia, Ukraine Situation
There is money to be made on the Russian incursion into Crimea, inside Ukraine. This is how you trade and profit from it. First, understand that the media will continue to talk about the situation, creating exponential fear. They will talk about every possible outcome, including war to get people to watch and their ratings up. Next, understand that nine out of ten times, the worst case scenario that is priced into the market does not happen. Therefore the Russian stock market will have over compensated, dropping far more than it should have.
The key here is if the Russian stock market drops sharply again in the coming days. The Market Vector Russia ETF Trust (NYSEARCA:RSX) has fallen dramatically in the last few weeks. Today alone, it is down more than six-percent. While I would not be a buyer here, if you see another ten-percent or more drop in the coming days, I will start accumulating.