TheRiskBlog

Blogger and Author Stanley Bing said in his recent video at Fortune, that a crisis like this teaches us many lesssons, but the problem with it is that “everyone of these lessons will be forgotten the minute this crisis is over”
Is that really so?

We all know what it is like when you see a chart and instantly know where the price is heading. Since you “know” that price is going up you go long. Now this was a controlled, rational decision you made, you saw the chart, you knew what was happening and you reacted, or was it?

At the moment it is very difficult to stay with the markets at all times. We are seeing high volatility throughout the markets. This is very helpful if you can deal with it correctly, but it doesn´t help when you are beginning and don´t quite know how to cope with risk.

On the other hand there is always opportunity out there. We as traders need to be able to find it and we can, it is not all that difficult. To be able to spot a good trade we first need to make sure that we understand what´s going on in the markets. Are the market participients scared or are they euphoric? Is there optimism in the market or does everybody think the world will stop turning tomorrow?…