3 Ways To Find ‘Zen’ In Volatility


Simpler Trading Team

May 01st 2020  .  3 min read

Volatile markets that have been setting historical records — good and bad — can add up to  a stressful environment for traders.

Sometimes you need a little “Zen” to maintain discipline in this wild new world.

Following are “3 Ways To Find Zen” in a turbulent market:

Learn From Losses

All traders will experience losses. It’s a fact of trading life.

So, you know it will happen, and this gives you an opportunity to learn and grow.

Trade losses help you learn what not to do. And when you know what not to do in order to not lose money, you can learn what to do in order to win.

These are lessons that last a lifetime. And as long as you don’t make the same mistake twice, you always have the opportunity to trade another day.

Sit On Hands, Chill Out

Overthinking trading usually doesn’t turn into gains. Try sitting.

Yes, sitting tight!

If the market isn’t “cooperating” with your trading plan, sit on your hands. Don’t click anything on your computer — chill out.

Traders who can follow the market as it shifts momentum and sit tight have learned a higher skill in trading. It’s one of the hardest things to learn. But it is only after a trader has firmly grasped this that more profit opportunities appear.

Be Clear In All Goals

“Buying cheap, selling high” isn’t a clear goal.

A clear goal in trading is to buy or sell at the right time. Learn to scale into or out of a stock or option as it rises or falls, and realize price responds to resistance.

It sounds simplified, but it helps guard against natural impulses: fear, hope, greed.

Be clear in your goal — right trade, right time. Write down your trades and your trading plan. It helps you pause enough to clear your head.

And, with all things “Zen,” if things are looking rough — breathe.

Then, go back to the beginning and restart the learning process.

We Saw: market starts off “sell in May and go away?” — 

  • Amazon warns investors to “take a seat”
  • Rent/mortgage tensions escalating
  • Cleaning manufacturers, well… cleaning up

We’re Watching: … if first day is signal of rough May —

  • For a real bottom to oil slump
  • Tech sector reaction to mixed APPL earnings
  • As states reopen businesses, economies

Want to train during live trading hours? — check out the Simpler Trading mastery training HERE.