HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

How to trade smart during the coronavirus outbreak


Don't Panic


You are more likely to panic when your investments drop and quickly sell out your assets, however, this is not the best way to react when the markets go down.  Reacting with your emotions and not your mind is known as “emotional investing”.   As challenging as it is, try your best to focus on your existing long-term goals at this time and avoid investing decisions based on fear. If you panic, you will make mistakes, which could lead to losses. More importantly, panicking pressures you to overlook bearish opportunities when the market recovers. Staying on track helps investors in times of turmoil.

Think ahead


In times of turmoil, both bad and good stocks are bearish.  However, the good stock will become bullish with time, while the bad stocks will remain down. For the experienced trader, the best time to buy a stock is when a good company’s stock goes down in price, and make it a big opportunity!  Therefore, market volatility presents the best opportunity to find good stocks to buy for a potential profit upon market recovery. Opportunities like these don’t come very often. As these low prices won’t last forever, they will probably, eventually rise.

Diversify Your Investments


Of course, you should choose your assets wisely in times of turmoil. But what’s even more important is to keep a well-balanced investment portfolio. Owning the right proportion of diversified assets is key to keeping your portfolio’s volatility under control. The way you allocate your investments largely depends on your trading objectives and risk tolerance levels.

Understand Your Risk Tolerance


If you decide you want to stay active in the market, there’s one golden rule that you should always keep in mind while trading: Never invest money that you can't afford to lose. Risk tolerance is how much of a loss you're prepared to handle within your portfolio. Ultimately, you should have a solid strategy in place to hedge against your losses. 

Finally, be patient! 


And last, but not least, be patient. Keep in mind, the market will take time to recover, and that is beyond your control. What you need today are smart decisions that will pay off tomorrow.

#source


RELATED

Biggest Mistakes to Avoid as a Beginner Trader

One of the things learned on the trading floor is that the most crucial part of the success formula is to accept a loss. It’s how traders gain an additional profit and an edge against others...

Choosing the Proper Forex Trading Strategy

A simple trading strategy is what most traders choose as a starting point. For instance, when a certain currency pair tends to come back from a particular...

How To Trade Forex: A Beginners' Guide

Are you wondering how to trade Forex? This article helps you through the insights of the Forex market. FX is one of the largest financial markets in the world...

Trader: Profession of the 21st Century

Trading is the process of buying and selling various financial instruments. Therefore, a trader is an individual seeking to profit directly from the trading process...

Trading styles

Like every other trader, whether you are a novice trader or talented expert in the field of trading forex, you come with your own unique trading style. No two traders are alike...

Reasons To Keep a Trading Journal

Why does a trader need a trading journal? It may seem like a simple question. Everyone knows: a trading journal is a tool that shows how many trades were placed...

Scalping: When Seconds Count

Today we will be talking about scalping as a trading approach. Scalping is characterized by very short-term trades with minor price changes and a profit of several ticks...

IronFX: How do I start trading forex online? A complete guide

Simply put, forex is a financial market that allows trading currencies globally. If traders believe that a currency will be stronger in value than its pair and if this is indeed the case in the end...

Forex Market Structure

The Forex market is close to being a textbook example of a perfect market that humanity created. Namely, a market is any place where buyers and sellers meet...

What is Forex and how to trade on it?

The term Forex - also known as foreign currency trading, currency exchange or by its acronym FX - refers to Foreign Exchange or to transactions between currencies...

Can I become a millionaire trading FOREX?

Can I become a millionaire trading FOREX? Continue reading today's article to learn more! Yes, you can, BUT... it's essential to understand what you're doing, acknowledging, of course, the risks of trading...

Common Trading Mistakes Every Trader Should Avoid

Trading in financial markets can be both exhilarating and profitable, but it's essential to navigate this world with caution and discipline. Many traders, especially beginners, often fall into common pitfalls...

Best Day Trading Laptops in 2023

When discussing the requirements for successful trading, pro traders often mention having the right tools. A quality laptop is among such tools. A trader needs a good laptop just as much...

Gold Trading Online: Everything you Need to Know

Gold is considered a popular precious metal and is also the earliest mined metal in the world. It is believed to have originated from space debris and not from planet Earth...

What You Need To Know Before Trading CFD

A Contract for difference offers investors and traders diverse opportunities to profit in the market from the price movement of assets without owning the asset...

Position Trading vs. Swing Trading: Differences and Similarities

Position trading and swing trading are two prominent trading strategies that you can use to access the markets. Both methods provide market opportunities as you trade...

How Risk-Management Will Help Your Trading Career

In the financial world, nobody ever became successful without taking a few risks. Many would argue that the greater the risk taken, the greater the reward will be...

Everything You Need to Know About Cryptocurrencies

The concept of money as we know it has evolved in recent years from purely physical money to a combination of the physical; digital representations of physical money...

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex Trading

Forex trading is a popular and potentially lucrative way to earn both active and passive income. However, it's essential to understand that learning forex is an ongoing process that doesn't depend on whether...

Understanding Signal Providers and Forex Trading Signals

In the vast realm of forex trading, a 'signal' serves as a beacon, pointing traders towards potentially profitable trade opportunities. A signal provider is akin to a lighthouse keeper...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.