How a professional trader makes decisions and profits

Another Earthquake in Japan brought flashbacks of Fukushima in 2011 and Uranium as an opportunity

Being able to joint the dots between news and decisions for trades, is a learnable and very lucrative skill. This morning is a case in point where last night’s dreadful earthquake in Japan, reminded us all of the painful memories from the Tsunami of 2011.  On seeing the news, and checking in with our neighbours, to make sure their family in Japan were ok, it was also time to get the trading weaponry lined up.

Fukushima and Uranium Trading

2011 saw a run on Uranium stocks, not surprising, given the disaster at the Fukushima power plant.  This time round, sentiment should see a similar perception and subsequent reaction by the market.  By being able to get a bead on the market, what is likely to drive sentiment, particularly recent history from just 4 years ago, there were likely to be many profitable opportunities in the Uranium sector. In particular, the prospects for shorting (profiting from the potential fall in stock or commodity prices), was a well presented opportunity for traders looking at their screens this morning.

This video provides an idea, real time, as to how professional traders like myself, take information and turn it into decisions, and typically dollars.

A moral side note

Again, this is not about being insensitive to world events and seeking to profit from misery.  It is simply a live case study as to how to join the dots between news and price moves, a methodology that is at its core, what successful trading and investing is all about.

Personally, my strategies these days are less toward such active trading, but when a special situation such as the earthquake in Japan, off the coast of Fukushima, presents itself, it is hard to let a profitable trading opportunity pass by.