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Stressful Times

We are living in stressful times. However, In times of greatest economic stress, the worst thing you can do as a trader or investor is to panic. Reactions to situations that are born of fear are rarely wise or helpful. Perhaps you didn't sell before everyone else began to, and the market is in a slump. Now you’re facing a huge loss, all in one day. Your first thought may be to call your broker and sell as quickly as you can. This is a classic panic reaction. You cannot allow yourself to give into a panic attack; don't rush to sell the next day. The time to sell is before a melt-down, not after. Instead, take a deep breath, and study your portfolio. If you didn't own these stocks now, would you buy them after the market crash? Chances are that you would; they'd be even cheaper. Selling them wouldn't be a correction, but a reaction.

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Sunday, 19 November 2017

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.