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Chapter 29, Part IV. Daily Routine and Disaster Plan. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    A human being has a mind protection system that when he gets shocked this natural brain protection system put us in some kind of euphoria. You think that all is OK and can’t realize that this is an emergency. In other words, you’ve stunned and can’t clearly analyze what is going on.

    So you have to be prepared for this. There are a lot different scenarios – Fed rate hikes without any notice, terrorist attacks, unexpected news announcements, political events, and catastrophes and so on. Markets hate abnormal situations, emergencies and uncertainty and react violently. This is huge reason always to have a stop-loss and never neglect money management. Yes, the market could show significant slippage and your order will be executed much worse than under normal conditions but this let you to survive and stay with this business. Otherwise, if this is on your favor – take your profit fast, since fast reactions usually do not last for an extended time, and counter reactions often come soon.

    Along with types of rare occurrences, there are a lot different events that could happen much more often:

    1. Power outages. This event could hurt your computer, phone and internet connection. The best way to deal with it is to have laptop or UPS, mobile phone with possibility to charge it from USB – this will allow you to make at least a single call to your broker and close positions. A second nice device is a 3G mobile modem or possibility to trade from your mobile phone or at least use it as GPRS internet connection module for your laptop. Be sure that your mobile phone is always charged when you trade!
    #1 Sive Morten, Dec 27, 2013
    Lasted edited by : Oct 9, 2016
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