I learned what little I know about trading from an intensive course taught incrementally over the course of a few years attending with and encouraged by a couple who had been my best friends for 30 years. One morning a few years ago “Bill” climbed on his bicycle for a late morning ride, was the victim of a grisly accident, and was killed – we hope – instantly.
He had two short-term trades in play at the time of his accident, involving a significant amount of money – options and covered call trades. His wife had the ability to close the trades but was neither in an emotional state to think of it nor had access to the passwords to his trading accounts. But because the course we took addressed the matter of sudden death, his brother-in-law was able to act quickly….he was in possession of a detailed list of accounts, passwords and instructions and, having taken the same course we did, the ability to close the trades and protect the money from loss.
In the summer of 1914 the world was on the brink of what would then be called “The War to End All Wars” . Nervous investors, primarily European investors, began to remove money with the Dow valued in the 80’s from the NYSE. On July 31, 1914 – exactly 100 years ago – the NYSE closed the exchange for trading without warning. It did not open again for trading until December 12, 1914. Trading opened at 54 and was restricted. The low of December 24 was 53.17.
Which brings me to the point of this post: what is your emergency plan? In addition to a trading plan which hopefully includes rules you set for yourself and adhere to, you may want to consider an emergency contingency plan. One acquaintance of mine has a complicated maze of passwords to protect his computer journeys which are carefully cataloged in a password corral. Unless that can be accessed by someone in an emergency though they are effectively inaccessible.
I can not tell you the best contingency plan for your specific situation, but do encourage you to consider: What would happen if the unthinkable were to happen to you?
“I am prepared for the worst but hope for the best” – Benjamin Disraeli.
