Hurricane Sandy Shuts Down Wall Street.

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For the first time in recent memory, Wall Street has been shut down by a Hurricane.  Periodically we’ll see the stock market closed for blizzard like conditions in the winter but rarely has it ever been shut down for a Hurricane.  But this isn’t like any typical storm.

Hurricane Sandy, also named FrankenStorm, has been pounding on New York since late Sunday.  It has left millions in New York without power and flooding has shut down most of the public transportation in the city.  After many evacuated the city, it wasn’t much a surprise when the markets were announced to be closed two days in a row.

The shut down of the markets have left main-street traders across the country wondering what they should do on days the market is suddenly closed.   The number one idea that comes to my head is to go back and review day trading basics.

Day Trading Basics

There are a few things that every day trader should remember and review periodically to make sure that their complicated strategies don’t get in the way of the most important part of their trading efforts. Here are three day trading basics I think people should hang on their wall for continual reminder:

  1. Be Consistent – No matter what your approach is, you need to be consistent. Chasing the latest trend or changing things up every day will almost always have bad results. Don’t let yourself get stuck in the challenges of change. Instead, be consistent in your day trading approach.
  2. Commissions Have Costs – It is true that some brokers are allowing commission free trades, but that is not often the case. The more commissions you’re paying out the less profit you’re taking in. Remember that in your daily trading efforts and you can significantly improve your profit margins by being smart about your transactions.
  3. Have Self-Control – Don’t let yourself get pulled into trades that will cost you. Don’t trade too early and don’t run when things look bad. Remember that day trading often focuses on hourly (or even faster) shifts in the market. If you trade when things look bad for an hour or so you can significantly impact your portfolio and daily profits.

It’s amazing that this late October Storm has had such a huge impact on one of the world’s largest cities. I hope everyone in New York is safe and I anxiously await the re-opening of the stock market so our trading and investing efforts can return to full swing.

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The Admin Team at MainStFinance.com focuses on providing the best information related to finance for individuals living on Main Street America.

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