Weekly research and analysis by Lloyds TSB

Anyone who began trading for the first time over the past 12 months will have witnessed an unprecedented period of market volatility with all asset classes having massive swings.

Anyone who began trading for the first time over the past 12 months will have witnessed an unprecedented period of market volatility with all asset classes having massive swings. Normally traders atune themselves to the market conditions relatively quickly, but if you have cut your teeth in this market environment, then it may be very difficult to adapt to what could be a significant drop in volatility over the coming weeks.

Naturally, flexibility is key. The expression ‘never saying never’ has never been more apt in respect to current conditions. It is true that a bit of volatility is good for the market. However, you can have too much of a good thing and we could be finally easing towards more usual trading characteristics. This does not mean that there will be a lack of opportunities, because we are not far from the beginings of some new major trends (dollar bearish). However, a consolidation period is long overdue.

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