The COVID Crash

What happened

On 12 March 2020 Europe closed its borders and the ECB disappointed the market. US indices suffered their worst day since 1987 and triggered circuit breakers.

Every bounce was sold: the trend on every timeframe pointed the same way.

How to survive a day like this

• Check the economic calendar and the news before you trade: these days were announced or brewing for hours.
• Reduce your risk: on extreme days, 0.5% per trade is plenty, because stops can slip far beyond where you placed them.
• Do not fight the first move. The first candles of a shock set the direction for the rest of the session more often than not.