Trading Volatility When Geopolitics Shake the Market

When news breaks, traditional chart patterns often fall apart. That's when you need a different playbook.

The key? Understanding how to position yourself when macro events drive the action. Position sizing becomes crucial—you can't treat a geopolitical shock the same as a normal trading day. Keep it smaller, stay nimble.

Options are your friend here. They let you cap your downside while staying in the game. Define your risk upfront, know exactly what you can lose, and structure your trade accordingly.

The pros avoid the common traps: overleverage, ignoring event risk, chasing moves without a plan. Instead, they scale in cautiously, use options to set hard stops, and respect the fact that volatile, headline-driven markets demand discipline over aggression.

When geopolitics take the wheel, execution matters more than prediction.