A Rough Day on the Markets
Occasionally days like what we just had with big falls on markets around the world will happen. In times like these it is important to not get emotional and stick to your trading plan and your trading rules. If your rules are broken or a stop loss is triggered, you must do as you always do and exit your position, but only if this happens. One day falls are often increased by smaller players panicking and the setting off of multiple automatic stop losses.
Remember, trends are not set by daily movements of the markets, they are set over weeks and months. One large move down might be nothing… or it might be the start of a major correction. Only time will tell. It will take many moves down over time to mean something and to change the trend in the markets.
Remember stick to your plan!