Tag: when to take break from trading?

What is contingency plan and why every trader should have one?, How a trader should build their contingency plan?

• If you want to be a successful trader, you should have contingency plans in place. You should use a “what if” process every time there is an issue and update the contingency plan as and when you encounter new scenarios and build your contingency rule book. For example: all the financial firms decentralized operational teams and have multiple data centres and backups after 9/11 attack.
• Your goal as a trader is preparedness to handle any surprises markets throw at you. To do so, you need to develop a dependable way to handle virtually every situation that may occur. Having events and circumstances thought out in advance is the key to manage risk effectively and build your capital.