Trading Rules for Events (Like Budget)

 1. Just Follow the Market Direction

Following the market direction is essential, especially during volatile events like budget announcements. The market's initial reaction often sets the tone for the rest of the trading session. By aligning your trades with the prevailing trend, you increase the likelihood of success and mitigate the risk of significant losses.

2. Don't Buy/Sell Against Market Direction

Avoid trading against the market trend. During events like budget announcements, the market can experience sharp and unpredictable movements. Trading against the trend can expose you to higher risks and potential losses. Instead, wait for clear signals that confirm the market's direction before entering a trade.

3. Use Strict and Affordable Stop Loss

Implementing strict and affordable stop-loss orders is a critical risk management strategy. A stop-loss order helps limit your losses by automatically closing your position if the market moves against you beyond a certain point. This is particularly important in volatile markets where prices can swing rapidly. Ensure that your stop-loss levels are set at a point that you can afford to lose without significantly impacting your overall portfolio.

4. Simple Trading Will Work if You Follow the Above Rules in Volatile Markets

Keeping your trading strategy simple can be highly effective during volatile market conditions. Complex strategies may not perform well when the market is unpredictable. By focusing on the basics—following the market direction, avoiding counter-trend trades, and using strict stop-loss orders—you can navigate the volatility more effectively. Simple strategies are easier to execute and less prone to errors during fast-moving market