Online Trading – My Dow Jones Trade Almost Crashed!

by tradingrebel7B on March 11, 2009

There is a law called Sod’s Law which basically says that if
anything can go wrong, it usually will… and at the worst
possible moment conceivable; so much so that it will seem as
though the universe is conspiring to get you!

This is what happened to me today, but I am glad to report that
it nonetheless had a happy ending.

So, there I was having done a Dow Jones trade that I had every
reason to be proud of. I had bought the Dow Jones at 6474 last
Friday night, just 4 points off the low of 6470 prior to a major
rally. I had watched it retrace to the 76.4% Fibonacci
retracement level
, while having added a slightly misguided
pyramid to the position at the 61.8% retracement.

Nevertheless, good fortune sometimes favors the bold and the
market roared, as had been expected when I put the trade on in
the first place. I was well in profit, and that pyramid was
helping very nicely. All good so far.

So, here I was booting up my computer about 35-40 minutes before
the market opens. My intention was to let it trade to the next
major high, and take profits on the whole position and then
reverse to a short position for the inevitable correction.

Well, you can imagine my horror when I found that my router was
not connecting to the Internet. Thinking it was a temporary
error, I rebooted the computer only to find the exact same
thing!. I tried again with the same result (and my computer takes
AGES to come back fully into operational use after a reboot).

So now what? I have a major position on, I need to take action
maybe immediately on market open, … and I can’t see it!
Thoughts of having to physically telephone the broker to take the
trade off blind, without a live chart, came into my mind.

There were only twenty minutes before the market opened. A
desperate idea came to me. I went up into the attic to retrieve
the DSL modem to see if I could possibly install it in time. At
least I was keeping a cool head, but the clock was ticking me
down.

I fiddled around in the back of the computer and switched wires
from the router to the modem, and connected it up. Of course,
the damn thing would not install properly. I had to try several
times, hunting for the specific driver, and the specific way to
connect online.

Just a few minutes left before the market opened. I logged onto
the Internet, opened my trading software, and no sooner had it
opened than it gave the “Market Open” clang of the bell. I had
made it with literally not a second to spare!

So what is the morale of this story? Why am I telling you all
this?

Be prepared! The things that you think could not remotely happen,
the things that would have to defy the laws of probability to
happen, DO happen! Who could have guessed that at precisely the
moment when I needed to access the screens to take profits on one
of my best trades in recent times, this kind of conspiracy of
events would present themselves to thwart me and potentially
screw up the trade?

If you use a router, make sure you have a modem handy too and
ensure that the software is installed! Make sure that you have
the number of the broker handy and that you KNOW how to actually
call in an order manually (do you?).

Basically, think ahead and try to picture what might go wrong and
come up with a solution to it beforehand. Maybe you need a spare
computer too? What happens if there is a total power cut in your
area (it WILL happen one day, you know).

Above all, when the crisis strikes, keep calm and try to think
clearly. That is what I was doing although it was getting ever
harder as the minutes ticked by, I was fooling around with
unresponsive hardware and cables and did not think I would make
it. It never helps to panic though.

Overall, remember that an ounce of good preparation beats a ton
of remedial action after the event. Remember, these things affect
your trading. There is no point blaming the universe when they
happen, as they will eventually.

So, BE PREPARED! You have been warned!

Copyright 2009. Asoka Selvarajah. All Rights Reserved.

Do YOU Know The 7 DEADLY Mistakes OF Online Trading?…

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