Day Trading: When It All Goes Horribly Wrong

In this article I want to go over something that happened to me today. What if you are trading and all of a sudden your light goes out and you lose your internet connection? That was exactly what happened to me today. Because of a thunder strike, light went of for a fraction of a second. My PC is connected to an UPS so that did not suffer any down time but in case of a general failure, internet connection will take some time to gain connection again and then you think you are almost there the same think happens again, a second thunder strike hits again and light went of for a fraction on a second. It took me about 5 minutes to get back on track, just on time to cancel my pending order. My trading account was finally safe.

External Factors

Now there are always external factors that you cannot control and one of them is bad weather. All we can do in this kind of situation is stop trading, don´t gamble with your trading account.

I remember something similar happened two years ago during my holidays in my summer house in Monção. A beautiful town but light cables are all above ground. Because of a car accident, the car hitting a light pole, light cables where not damaged but the glass fiber cable that runs right below it did get damaged and it took a couple of hours to get back a normal internet connection.

Conclusion

There are always factor that we cannot control, bad weather or technical problems, but we have to know what to do in case something goes wrong. In our trading plan we have to have rules in place for this kind of situations. The first thing to do is cancel your orders or get out of the market as soon as possible. If you have lost internet connection try to call your broker and let them cancel all your pending orders and close all your open positions. So get your trading account safe first then stop trading.

There will always be tomorrow!

Hope this helps,

Alexander Soares


Also published on Medium.