So traders, what becomes most important now in this heightened market volatility? One answer might be stepping back from taking trades if you’re not feeling comfortable with your ability in this volatility.
Another answer might be making sure that you have a plan, that’s well thought out and works, and one that you can follow.
A “trading plan” (which most people don’t want to do) is actually a set of rules that will lead to profit (which most people do want). During this time having a plan is more critical than ever. And having the ability to follow it is even more critical.
The volatility in the market can heighten the problems that are already there for you. The problems I see with traders usually stem from issues with their mindset, or psychology.
Being able to trust yourself to do what you say you’re going to do in the market is incredibly important. I think it becomes even more important when the market volatility sets in.
Look at your trading for a minute. Are you weathering the storm of volatility OK? If not, what are you doing? Have you stopped trading to wait it out?
When it’s not necessary to trade, it may be necessary not to trade. If you’re still trading and not doing OK, there may be a challenge with discipline and trust in yourself. The volatility requires that we are even more disciplined than usual.
If what I’m saying rings a bell, I invite you to pull back, stop your trading and think about how you want to change the trajectory that you’re on, to head in a direction that’s going to be more successful in the long run.
If you need support, or you would like an outside opinion, I am available for a free consultation. I may be able to help.