Trading Educators Blog
These are the Times when Millionaires will be Made (but many more will lose there shirt)
I've read this phrase over and over again in scam emails, Twitter posts of different Gurus and other sources mainly because of marketing reasons using the current panic in the markets to sell their wisdom.
But all I know from brokers I know is, that many of their clients are losing or already have lost tremendous amounts of money because they only think in terms of "how much money can be made" during these crazy times, but don't think about the other side of the coin, the losses.
Here are a few simple ideas you might consider implementing during these crazy times:
1) Stick to your trading plan
2) Trade less or stop trading at all and stay on the sideline
3) Change to markets less affected
4) Change to micros or minis
Let's start with number 1 on the list "stick to the plan". Well, you will probably say that's a must in trading in general, but believe me, during these volatile and unpredictable times many traders do unpredictable things and they do NOT stick to there plan and during the time we are in that's the first step to blow a trading account.
You are usually better off with trading less or even stop trading at all. Just ignore the "it's the time to get rich" messages and get back to trading as soon as everything settles down a bit.
Changing to markets less affected sound easy and you might not find one so changing to micros (when you trade the index minis) or to minis (when you trade the normal like in Crude) will definitely help you a lot to bring risk down to normal size. Yes, you will probably not get rich over night, but you will also not end up in the poorhouse.
Stay healthy guys and trade safe,