Stay Safe – Don’t Trade Panic Markets

As I write this. The stock market is suffering one of the largest days of losses in history. Today is March 12, 2020 and the Dow Jones industrial average is down over 2300 points; the S&P is down over 200 points. This of course has been the result of the coronavirus pandemic. With markets in a state of panic, the previous trading sessions have begun with huge losses over their previous day. If you are a trader but without years of experience, you might feel this is a perfect time to make a killing, figuring the market will head down throughout the trading session. Nothing could be further from the truth. And the truth is that in markets such as this, the best thing to do is to stay on the sidelines and not trade. This is a whipsaw market, with huge swings, both down AND up, over minutes or even seconds. Be smart and do not trade while markets are in a state of panic. If you do, you are more likely to be stopped out with maximum losses. If you’ve taken my course, you know that my number one rule is “when in doubt get out”. In this market, do yourself a favor and stay out until things settle down.