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How to avoid market crash?

  • #21
  • Oct 25, 2016 4:46am Oct 25, 2016 4:46am
The scheduled big news events are very much avoidable, as long as you develop the habit to check the Forex calendar regularly, and by regularly I mean at least once a day.
As for the unexpected ones, the best you can do is learn how to place a stop loss properly and make a good use of it.
  • #22
  • Oct 13, 2023 1:07am Oct 13, 2023 1:07am
Quoting hanover
1. Trade smaller position sizes (e.g. less than 1% equity per trade). Understand that a stoploss won't necessarily save you, as execution of all order types depends on currently available liquidity. 2. Deposit only a small portion (e.g. 10%-20%) of your trading funds with your br0ker; hold the rest in reserve in an on-call bank account. (It's inexpensive enough to wire more funds if you go into drawdown). 3. Choose your br0ker carefully. Large br0kers that allow trading in several market types (diversification) offer a little more protection. Read...
hi mate according to 2. u mentioned, could i ask that if you are oversea clients, can the brokers actually chase after you for the negative balance? Or people who own the broker oversea would just forget about it and move on(not depositing to that broker again).
  • #23
  • Oct 14, 2023 5:08am Oct 14, 2023 5:08am
Quoting duy90
I have been thinking. Even if one was to trade for 5 years straight in profit, but one of those flash crash in 2010, swiss black swan in 2015 and other black swans would pretty much clean your account and furthermore, you may end up even owing the broker money because the volatility was too high for closing orders... I am wondering how would you as a trader avoid these situations? I know one of them is to analyze global situations from economic perspective. However, not everyone understands the cause/reaction of these events around the world.
Try to keep your risk level lowered as much as possible and take your decision carefully and don’t open unnecessary trades.
  • #24
  • Oct 14, 2023 6:54am Oct 14, 2023 6:54am
Quoting Rparm
If the trader in question is unaccustomed to trading prior during or after volatile events I suggest the following: For scheduled (known before they happen) News Events that are of High Impact such as Brexit, and the Swiss Crash for example.. one can either observe and keep track of the News Events before they happen, or use automation to keep track of News Events... and of course then leave a solid buffer of time before and after such events where one does not trade. Rule of thumb: if a Trader is unsure of a trade, system, potential volatility...
splitting normally reduce the wins, at least with bigger amounts.
but why you do not protect your money complete inside the broker against a broker bankrupt, so no splitting necessary and full advantages of all in one place possible?
  • #25
  • Oct 14, 2023 7:01am Oct 14, 2023 7:01am
Quoting hanover
{quote} Before the peg was removed, buying EURCHF at 1.20 was a no brainer trade. The SNB gave no warning that they would remove the peg -- in fact, they gave the opposite indication just a week or so beforehand -- but when it was suddenly removed, CHF spiked to somewhere nearer fair value, and buyers got burned. For the disaster to be "predictable" you would have needed to know the undisclosed intentions of the SNB. I had no real money trades open at the time, but I still lost money when Alpari UK went under.
thats the problem with blocked money when a broker gets bankrupt. then i takes often long to get your money back (and when you are a good trader maybe you lose 1-3 years of profits from the money, so can be more then 100% loss in opportunity costs). holding structured products like stocks , ETF , bonds and so on is faster getting back and outside the bankrupt broker rest money.
  • #26
  • Oct 4, 2024 6:30am Oct 4, 2024 6:30am
Timing the next financial crash - part 1

Inserted Video
  • #27
  • Oct 12, 2024 5:57pm Oct 12, 2024 5:57pm
It depends what you're using the money for? If it's for drawdown then you'll still want a reasonable portion of equities to ensure future growth and to protect against inflation. If you're risk adverse you'd want some bonds in the mix too.

If you're buying an annuity then you should be moving into bonds as this hedges against annuity price changes.

If you plan on spending some money on something specific when you retire (pay off mortgage, world cruise, campervan etc) then moving the designated funds to cash would make sense.

So generally moving into 100% cash probably not a great move but it depends on your plans and appetite to risk.
  • #28
  • Last Post: Oct 22, 2024 5:30am Oct 22, 2024 5:30am
Hey!
How to be sure that you should take profits, before everything goes down?
Thank you.
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