Student Question

When the CME was closed yesterday a student asked: My order placement is down-I can't get out of my position, what do I do? typically it is best not to try to place orders at all-since its more likely that things turn worse if you get really worried i would only place a market order to sell (if you are large player it pays to befriend somebody working on the floor at the exchange to place an hedge trade since the floor typically is open longer at a six sigma event) yet another scenario why the quad exit is a traders best friend (trade small, reduce risk) your money management needs to be set up that your trading system can absorb such "disasters" so you can emotionally withstand such unforeseen handicaps as well- most importantly is you can keep cool

i always trade of the large contract (do not look at micros or minis if you trade futures-the closure might affect these charts) friendly reminder most common mistake of traders is to look at wrong aspect ratios which distort charts this is especially true for small handheld devices for example

this is how a 15 minute chart on a phone could look like it being an execution time frame it doesn't help

even if you zoom out it might look like this:

still no help since the compressed ratio doesn't reveal direction it suggests sideways:

while in truth, the correct representation reveals the direction of price:

this is the number one mistake in my humble opinion that most traders make in their trading representation

representation=psychology just one example while all aspects of trading need to be principle based to protect you in such a scenario where you are out of control once the exchange is open again wait a second-let all the amateurs place their orders which typically provides a much more ideal exit point especially in an six sigma event think: Baldwin exit