Monday, 8 September 2008

Traders, Close All Positions At The End Of The Day!

The News of the US Federal Government to take over the two "Mortgage Giants" Fannie Mae and Freddie Mack at the weekend, had a frantic effect on the opening of the World Stock Markets.

The Dow Jones future prices gapped up nearly 300 points when it reopened on Sunday, Nikkei closed up over 400 points, the ASX200, the Australian Index ended up nearly 200, the Footsie gapped up nearly 300 points at the open ......

The essence of the above, should make it clear to all "traders" that they should think twice if they are tempted to leave their positions open to the next day, specifically where the weekend is involved, as the after market news could really prove to be detrimental to their trading accounts! Of course this is if "Guaranteed Stops" have not been put in place.

In situations like above, where the market can gap up or gap down by a large margin, a trader could risk losing all his or her capital in one day if he or she has left his or her destiny to fate. So please make sure you apply tight discipline to your trading method, if you are to avoid having painful days during your trading careers.

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