Breathe… Find ‘Zen’ In Market Volatility
Tuesday turned into a sell off as the volatile markets that have been setting historical records – good and bad – continued. This constant shifting back and forth can add up to a stressful environment for traders.
Sometimes you need a little “Zen” to maintain discipline in this wild world of trading.
Following are “3 Ways To Find Zen” in a turbulent market:
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.
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 plan that more profit opportunities appear.
“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.