If you have been trading, you will know how crazy the forex market is this month. I bet you guys know that the stocks market is sliding as if they are taking a roller coaster at the moment. This also has impacted the forex market as well.
Normally my 25 pips stop loss extends all the way to the next resistance or support but now my stop loss has to be 100 pips to be able to extend to the same level.
I believe that there are a lot of new traders who have their account wiped out by now due to the strong volatility of the market.
Initially, I try to trade using the same stop loss and target profit but was stopped out so fast that I dun remember this has ever happened before.
My advice for my readers is to stop trading on your account for the time being as most of you do not have a reliable strategy on hand and you do not know how to deal with this situation.
In fact, we have 5 consecutive big losses for the trade copier service and I start to receive a lot of emails from users asking me what happened. Some new user started to doubt me and ask if I am really a real trader or not.
Therefore I start to think of how to trade during this super volatile period. Actually I do love this special period of trading as it allows me to test whether my strategies still work or not.
With the adjustment to the lot size and stop loss and target profit, I am glad that it still works.
With 6 winning trades on the 11th and 12th March, we have made back all the losses and turn our account back to profits again to 30.3% profits this month so far.
I dare to say that this period if the best time for you to tell who is the real trader and who are the marketers who know nothing about trading but pose as traders.
The boxed area is the first trade that I have posted on my blog. All those below are taken after the post.
From the picture below, you can see that I have increased the profits from 11.78% from the first trade posted to 30.03% today.
Actually it is pretty amazing as a lot of people are losing money in stocks trading while we continue to make good profits from trading the currency.
This again proved to me that forex trading is the best way to overcome recession. At this period where business started to wind up and people losing jobs, I can assure you that there is no better time to prepare yourself by starting to learn this skills of forex trading.
Okay, the main purpose of this post is to teach you guys how to trade during this volatile period as this method allows me to continue making profits with my trading strategies on hand
This is what you have to do if you wish to trade during this Corona Virus Period
1) Half your lot size
2) Double Your Stop Loss
3) Double Your Target Profit
With your lot size cut by half and you double your stop loss, you will risk the same amt in every trade
You used to trade 1 lot and set your stop loss at 25 pips which means that you will lose $250 per trade when it hits your stop loss.
If you trade with 0.5 lot and set your stop loss at 50 pips, you will still lose $250 per trade when it hits your stop loss. With this extended stop loss, your stop loss will be less likely be stopped out due to the volatility
If you decide to extend your stop loss to 100 pips, then you need to half your lot size again to 0.25 lot so that you risk the same amt per trade.
With a double stop loss, you need to also double your target profit as the volatility will also extend your target profit as well.
However if you are totally new to trading, I will recommend that you try the demo for this period to see for yourself how crazily volatile the market is.
I am glad that my strategies still works during this period after I did some adjustment to the stop loss and lot size.
For those of you who are interested in using my trade copier service, you can take a look at the link below