Today, most traders uses online Trading or Automated Trading platform where most decisions are make without the help of the broker and at all time relying on the computer.
The fact is technology ease the traders task in execution of trades.
However, they got to be aware there might be unforeseen circumstances that might leads to trading disasters.
Every one should know what is "Murphy's Law".
Things can go wrong when you least expected it or when you thought everything is in your favour.
Thus, what are the things that might go wrong with online Trading? It is quite common that computer users encounter hard disk crash or it just gone dead due to mother board or components failure.
It might happened when you are about to or in the middle of taking your profits or cutting your losses.
What could happen if your data provider failed to deliver at that crucial moment? What could happen if your phone went dead and you cannot reach your broker? What could happen if you enter a wrong quantity of shares and you failed to realize it until a while later? Can you react fast to save the mistake done? What could happen if there is a power failure in the middle of executing your trades? Do you know how to react to these disasters in a calm and speedy manner that you could be in control of the situation? If traders are not prepared for these disasters, it is a guarantee that they will be in for a rude shock of their lives.
It will be the longest minutes with your heart pounding away while one try to figure a way to solve it under a panic situation.
It is always in a panic situation that one cannot think clearly and act wisely.
Thus, everyone should look into ways to handle such emergencies that could surface when you least expected it.
The followings are some of the strategy that one could adopt to avoid such pitfalls.
1] Prepare the conventional way.
Prepare the brokerage firm contacts, name of broker, and your trading account number within your reach where you can see it at all times even in a power failure.
So, do it the conventional way.
2] Invest in electrical protection Use a surge voltage protector and electrical backup for your computer.
If using a laptop, always have a spare fully charged battery at your side.
In this way, you will not loss valuable data.
If one is using a desktop to trade, it is best to have a laptop with you so that you could use it in replacement of your desktop computer.
3] Call your broker Place your broker on speed dial so that you will cut down seconds of losses.
4] Standby communication lines Always have a mobile phone with you that is fully charged and within reach.
5] Practice the encounter of such situation Everyone can simulate such happenings by shutting down their desktop or laptop to see how long it takes to boot up to the required platform.
Call your broker at times to see if you could get the required response time.
6] Always place a stop loss! Place a stop loss the moment you enter a trade! This is the sure way to control your absolute loss.
Day Traders should take this seriously as it will happen at the least expected moment of your trading life.
It might mean a loss of several thousand dollars within seconds.
So, have discipline and be safe.
The fact is technology ease the traders task in execution of trades.
However, they got to be aware there might be unforeseen circumstances that might leads to trading disasters.
Every one should know what is "Murphy's Law".
Things can go wrong when you least expected it or when you thought everything is in your favour.
Thus, what are the things that might go wrong with online Trading? It is quite common that computer users encounter hard disk crash or it just gone dead due to mother board or components failure.
It might happened when you are about to or in the middle of taking your profits or cutting your losses.
What could happen if your data provider failed to deliver at that crucial moment? What could happen if your phone went dead and you cannot reach your broker? What could happen if you enter a wrong quantity of shares and you failed to realize it until a while later? Can you react fast to save the mistake done? What could happen if there is a power failure in the middle of executing your trades? Do you know how to react to these disasters in a calm and speedy manner that you could be in control of the situation? If traders are not prepared for these disasters, it is a guarantee that they will be in for a rude shock of their lives.
It will be the longest minutes with your heart pounding away while one try to figure a way to solve it under a panic situation.
It is always in a panic situation that one cannot think clearly and act wisely.
Thus, everyone should look into ways to handle such emergencies that could surface when you least expected it.
The followings are some of the strategy that one could adopt to avoid such pitfalls.
1] Prepare the conventional way.
Prepare the brokerage firm contacts, name of broker, and your trading account number within your reach where you can see it at all times even in a power failure.
So, do it the conventional way.
2] Invest in electrical protection Use a surge voltage protector and electrical backup for your computer.
If using a laptop, always have a spare fully charged battery at your side.
In this way, you will not loss valuable data.
If one is using a desktop to trade, it is best to have a laptop with you so that you could use it in replacement of your desktop computer.
3] Call your broker Place your broker on speed dial so that you will cut down seconds of losses.
4] Standby communication lines Always have a mobile phone with you that is fully charged and within reach.
5] Practice the encounter of such situation Everyone can simulate such happenings by shutting down their desktop or laptop to see how long it takes to boot up to the required platform.
Call your broker at times to see if you could get the required response time.
6] Always place a stop loss! Place a stop loss the moment you enter a trade! This is the sure way to control your absolute loss.
Day Traders should take this seriously as it will happen at the least expected moment of your trading life.
It might mean a loss of several thousand dollars within seconds.
So, have discipline and be safe.
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