Have you ever had a power cut during holding a trade or trades? If not, well that is okay. In this post I will go over how to handle a power cut or internet loss during a period of day trading. Referring to trading lower time frames and targeting a small amount of profit and not using a stop loss, instead managing the position with a mental stop loss which many day traders use.
Let’s first look at an example; say you are trading the 15 minute chart or less, you have a few positions open and having a good day of trading, then when almost considering cutting losses or taking profits on some positions, the unfortunate happens, the power cuts or similar, the internet goes down.
Yes, this has happened to me in the past..
Now, the question is, what do you do? Do you panic and call the electricity company or hope that the power will return quickly and your trades are okay or do you have a way of connecting to the internet and finishing the management process on the positions?
Simple Solution: The simplest solution is to always set the stop loss level and take profit level on the position when opening. Set these levels with a bit of space if you are looking at the price action to decide whether to either hold, close or take profit on your positions.
Complete Solution: Other than the solution above which is always a good idea to use in trading, I recommend also using:
- A Laptop for the trading computer, that way, if the power cuts you still have power on the laptop. The backup power of a laptop has many benefits.
- A android based phone such as a Samsung S5 or later with data on it. The data can then be switched on quickly after a power cut on your phone and then you can use your phone as a wifi router. This option is called Mobile Hotspot on Samsung phone as an example. Make sure however that you do have data on your phone in order for this feature to work. Of course, make sure before using your phone as a backup internet supply, that you have a good connection to your phone provider where you use your laptop for trading the market.
In other words, once you have those two together, you can use the data on your phone to connect back to the internet via your phone to your laptop and finish the management process on your trades.