The Lehman Weekend

What happened

On 15 September 2008 Lehman Brothers filed for bankruptcy after a weekend without a buyer. The global financial crisis went from fear to panic.

Money fled to the yen as a safe haven: USD/JPY fell sharply as Asia, Europe and then the US opened.

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.