Murphy's Law And Forex Trading: Preparing For The Worst

It is a typical Monday morning and you are up earlyyou might have, and it is good to try to form a
to trade your favorite currency pair as the financialpersonal relationship with someone at that company
markets open in New York. But a few hours intoso that if the worst happens you have a number to
your trading you notice that the price data on yourdial and a name of someone who can help you.
trading platform seems to be delayed, and youPlacing trades over the phone is not something that
realize that you cannot close any of your openis very common today since it is much more efficient
positions or even see where the current marketto use an online trading platform (and with some
value is. You look over at your internet router andbrokers you can even use a mobile version of their
you see that the indicator light for a live internettrading software), but it is always good to be able to
connection is off, and it will not come back on.verbally articulate an exchange rate quote in the
There have been hundreds of these types of horrorevent that you must trade over the phone. If you
stories where someone who needs an active internetbecome confused when your broker starts reading
connection to monitor their open forex tradesoff numbers to you about where your open trades
suffers from either a power outage or ahave moved to in the market, you might end up
disconnected communications signal that will notunnecessarily losing money by prematurely exiting a
come back on, and suddenly they enter into a nearposition that could have been profitable if it remained
panic because they cannot touch any of their openopen.
trades or see what the market is doing. This can beOn a practical note, if you are trading at home then it
especially stressful if you do not normally trade withis good to purchase a surge protector for your
reasonable risk management and do not enter in acomputer that also has a battery backup in case of a
stop-loss level when you trade.power outage. These can usually be had for under
The best thing that you can do to make sure that$100 at most electronics stores and can be very
this does not happen to you is to establish a gooduseful in the event of a power outage. It is also
verbal relationship with your forex broker when youimportant to have a landline telephone with a cord
open your account. Usually when you open a newthat can still function if the electricty goes out, and
account you will get a call from someone at thatto keep the phone number of your broker handy so
company that will address any questions or concernsthat you know who to call.