Discover essential trading strategies to navigate the anticipated market volatility in 2025, driven by new tariffs and geopolitical tensions. File photo.
Traders around the world have braced for volatility following President Trump’s aggressive new tariffs on Mexico, Canada, and China. Canada has already announced retaliatory measures, while Mexico and China have signalled their intent to retaliate, heightening fears of a trade war.
While the tariffs have come as a shock to many traders, Roger Eskinazi, managing partner at Tickmill, says the heightened volatility across global markets creates both risks and opportunities. “There was a lot of talk about tariffs leading up to Trump’s presidency, but the market did not expect them to be implemented this quickly and, as a result, has greatly underpriced the risks. That said, whenever there is disruption, there is opportunity.”
As traders assess the potential onset of a global trade war, Eskinazi shares four key strategies to navigate this period of volatility.
Research the impact of tariffs on specific sectors and markets
Market volatility often results in sector-specific fluctuations. Understanding which industries are most affected by tariffs can provide traders with a strategic advantage.
“For instance, increased tariffs on automotive imports may weaken shares of manufacturers reliant on international supply chains, while local producers may experience a surge in demand,” explains Eskinazi. “Similarly, commodities such as steel, aluminium, and agricultural products could see significant price swings. Keeping a close eye on industry reports, economic forecasts, and market trends is crucial in identifying potential trading opportunities.”
Identify the right market to trade in
Volatility doesn’t affect all markets equally, so traders should focus on identifying assets that present favourable conditions.
Currency pairs, for example, may react differently based on geopolitical developments, suggests Eskinazi. “The US dollar, Canadian dollar, and Chinese yuan are understandably seeing sharp movements, offering traders opportunities to capitalise on price fluctuations.
“Additionally, stock indices and commodities such as gold, often seen as a safe-haven asset, can provide alternative investment avenues,” he adds, noting that with Tickmill’s advanced trading tools, traders can analyse historical trends and current sentiment to make informed decisions on which markets to engage with.
Maintain disciplined risk management strategies
While volatile markets create opportunities, they also pose significant risks. Eskinazi advises traders to employ disciplined risk management techniques to safeguard their capital.
“This includes setting stop-loss and take-profit levels to mitigate excessive losses and lock in gains. Leverage should also be used cautiously, as market swings can amplify both profits and losses.
Diversification remains a key principle – spreading investments across multiple assets reduces exposure to any single market shock.”
Leverage the best trading tools
Navigating volatile markets requires precision and agility. Tickmill provides traders with advanced analytical tools, real-time market insights, and automated trading options to enhance their trading strategies. Features such as economic calendars, sentiment analysis, and AI-driven trading strategies can help traders stay ahead of market movements and execute well-timed trades.
“As markets react to the unfolding tariff situation, traders who remain informed, disciplined, and proactive can turn market uncertainty into a strategic advantage,” says Eskinazi.
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