Ask Colin

How can I use technical analysis to predict events like Sept 11?

If I ever discover a way to predict markets, I will let you know. What you are talking about is a dramatic change in the situation. Indicators based on past price action are rarely useful - how could they be unless the market somehow knew of the unknown and unexpected?

Your only guide is to think through the implications. You also need to think how others are going to react. Experience is the only guide here, though you have to be careful not to be too clever in the case of how others will react - most traders have not read history and have little experience.

Most importantly, trading is all about having a trading plan and risk management. If you have a position, you should always know where you are wrong. That is where you pull the plug on the trade (some markets allow you to place a stop-loss order). This is what it is all about - not prediction. Leave that to the fortune tellers.