Stocks, FX How to fight difficult market


In February 2022, both stocks and FX were extremely tough. As introduced in the article below, the reason is that the market has become rough due to the increased possibility of Russia’s invasion of Ukraine. Every currency pair has been turbulent and fluctuating up and down, and many traders should have lost all their money. It’s up and down 100 pips in just a few minutes, so even a seasoned trader should be struggling a lot. I am writing an article about what to do when I come across a market that is too harsh.


How to deal with severe market

In the event of a war, plague, financial crisis, or other contingency, the market can be very turbulent, disoriented, and difficult to win. Volatility goes up so much, market sensitivity goes up, and even a little bit can cause volatility of 100 pips or more. If you encounter such a market, we will offer you one solution at a time as to how to deal with it.

Avoid dirty charts by looking at daily and weekly charts

The chart below shows the daily AUD / JPY as of February 2022. Although it is displayed with a Bollinger band, the chart of the last month has almost no period when there is a big direction, and there are big beards on the top and bottom, and the positive and negative lines alternate depending on the day. is. Such charts should be excluded from investment.

AUD/JPY Day Term Leg 02-2022

The key to winning a trader is how to find a market that is easy to win. Markets with clear daily and weekly directions are easier for traders to win, so be sure to choose a market that is likely to win.

Do not trade

In the event of a war, plague, financial crisis, etc., the market can be 100% turbulent and difficult to win, or you can lose a lot of money and lose all your money. It is also an effective means not to trade in such an emergency. It can be said that it is also an effective tactic to be quiet until the squirt cools down.

Fight with one point to buy or sell

If you are not sure whether your trading market is buy or sell, we recommend that you play with one point. The chart below is an hourly chart of AUD / JPY in mid-February 2022. Other markets are also in a rough state, but as you can see from the chart below, you can see that the market is very harsh, with a big crash if you think it went up and a big crash if you think it went down.

AUD/JPY 1 hour term leg 02-2022

Looking at such charts, it is easy to think that you can win both by buying and selling, but if you go for both, you will often be beaten by either. In that case, buy or sell one point, and buy from the place where you have dropped it. Or it is recommended to sell from the place where it has gone up. By clarifying how to fight, you will not be at a loss.

Enter automatic stop-loss setting

In the event of a war, plague, financial crisis, etc., the market becomes more sensitive, and a small event can quickly cause a 100 pips level ups and downs. After entry, be sure to set the automatic stop-loss setting. It is wise to stop the loss at -10pips to -20pips. In the case of such an emergency, the market crashes suddenly or suddenly soars, so it is not uncommon for people to be fatally injured while talking a little. Try to withdraw the wound in a shallow state.