Hello Folks,
The dynamics of trading the market change after a specific period. My concern is the spike that usually occurs especially when you are in one direction and the market moves in the opposite direction. Have you experienced such before, what is the best approach a person can take to salvage the situation?
I have had a few suggestions like opt-out, some have said canter trade so you can recover. Do well also to share how one can avoid this possible scenario.
Hmm, buddy as some of my fellows said above it really depends on which sort of trading timeline you are following because for the short-term range according to the basic precautions and risk management, all you can do is the tight stop loss but in the long term range there can be several options still the trader or the investor must know his position well with the proper consideration of the Diversification in greed the "Eggs should not be in the same basket".
Rest the trend reversal is very common in uncommon instances because sometimes it may be caused on purpose and sometimes the trading analysis may go wrong. But as we are here discussing the one shot moments you can defend it on some level by pre-actions otherwise all you can do is the readjustment of your position.