Hi Traders! The Coronavirus is a real threat on life as we know it. It is spreading in a scary pace, affecting all the people regardless age, gender and nationalities. It causes the panic in every single aspect of life as we know it. The threat on the economy is real. People can lose jobs. The stock market collapses. The “Trump rallies” are erased and companies report losses already. And the future doesn’t look promising, as for now.
Many traders ask me – Vladimir, how to trade Forex in such periods? So this article is an answer to that and to give you valuable tips! In this article I will explain about how to trade Forex during this Corona virus crisis and to provide you the essential tips on how to deal with the market in the right way.
Here are the most important things you need to cope with such crisis –
Trade Facts
The first important thing is to trade the facts, not rumors, believes or wishes. Currently there will be a lot of rumors around online in every single day in forums, free groups, etc… The bigger the crisis, the bigger the speculation is and all you can do first of all is trade facts. The believes do not have their places in trading and mainly not any wishes, so stop wishing and start making. If you understand the fact that you did a mistake, you didn’t follow the rules then cut it and get out of the trade, the sooner the better. Its much better to cut your mistakes early rather than finding yourself in a position where you are praying for the market to move in your way
Do Not Call Tops/Bottoms!
This is a very common mistake that traders do especially in a crisis, the common belief is whatever goes up has to come down and whatever comes down has to go up. I have some news for you “Up means Up and Down means Down” if the trend is going up and if there are no evidences of reversal then do not try to be a hero and call where the top will be because many tried this and they lost. So do not think that you are smarter than anyone else, don’t think that you can do it. Don’t think that the previously respected high will be respected again and the previously respected low would hold again because the levels are built to be broken. There is no guarantee that what happened in the past will happen again in the future, the past levels belong to the past and the future levels are unknown and this is something that majority of the traders do not understand. As hard as it might be to know this I just wanted to tell you the truth, trade evidences and facts not what you believe is going to be a top or bottom, if there is no fact then there is no trade.
Wait For Setups
Whatever the strategy, steps and rules that you use and apply based on price action, indicators, techniques, etc.. let the market create your opportunity first of all. Do not bend the rules just to create your setup. For example if your setup rely on 4 things then don’t trade if there are only 2 or 3 things, wait until you get all the 4 things together. Remember to wait for the setups do not create one before the market is ready.
Know Your Risk
Majority of the traders in periods like this enter the trade without knowing the maximum loss, if you don’t know what you maximum risk is and you have no idea how to plan to do that or any risk management plan, then don’t trade. If you plan to trade and enter it thinking that it will be fine and the price will move in the direction you wanted to, then I have a news for you “most likely it will not”. May be if you are lucky it will be fine one time but for most of the traders it will not be fine because one time you make a lucky call makes you believe that you can make these calls always but in reality its illusion and the next time when to try to do the same you will lose. This is a very dangerous place to get lucky on calling something without any facts or evidences. So if you have no idea how to value your risk or if you don’t understand what will be your risk then use proper tools for that, there are great tools out there in the market or simply don’t trade.
The best trading tool that helps control the risk management that I know, is this one – http://bit.ly/2t1MaWB
Invest In Yourself
One of the best things that you can do in such periods is to invest in yourself. You can read books, articles, listen to authorities understand from their mistakes, practice methods and practice how to cut your losses early, how to let your profits run, what does it mean to manage the risk, what does it mean to let trades run and gain maximum of the profits in such cases and educate yourself, this is your best time to do that. Every single crisis is an opportunity for something good to happen and let that happen to you, this is a good time to develop yourself. This is not your time to sit and cry, this is your time to take actions and the first action that you can do for your own future is to invest in yourself.
Do Not Afraid Of Help
Majority of the people are shy to ask or afraid to ask, they try to digest information by themselves by thinking I know best or I know better or to me it will never happen or I will find a solution, this belief is wrong. Do not be afraid or shy to ask help or questions, talk to like minded traders, talk to those who understand your language, follow professionals, there is no shame in that, if you cannot do something by yourself then call professionals (for example most people call electricians to their house to make electricity work. You call plumbers or any other professional for anything else or any other aspect of your life so why not in trading). If you need help in anything then ask for help, there are lot of great help available for you out there online, like we are doing this on daily basis in my Traders Academy Club. There are signal providers who gives reliable Forex signals or automated Forex trading robots or other communities, also for stock or options, whatever it is, there are great helps available out there. So do not deal with issues by yourself, don’t cope with something that you don’t know how.
So traders this is what I wanted to share with you all today. This Coronavirus is scary but this crisis is your opportunity to do best you can, to improve yourself, and to maximize your trading!
- Do not trade rumors
- Do not guess where a top or bottom will be created
- Do not sell when all goes up, and do not buy when price goes down.
- Trade facts and real evidences!
- Invest in yourself! Read, practice, ask questions!
- Keep proper clean risk management plan!
- Never trade without knowing your risk!
- Cut losses if you understand you are wrong!
- Talk to professionals!
- Be part of like-minded traders and community. Follow real traders.
Watch the webinar of Forex Trading During Coronavirus Crisis
I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.
Also you can get one of my strategies free of charge. You will find all the details here
Thank you for your time reading this article.
I wish you the best!
Yours to your success,
Vladimir Ribakov
Certified Financial Technician
