New year, new expectations, new hopes, new projects… everything is new.
The truth is that the new generates, beyond expectations, fear and anxiety. In the eyes of psychology, of course, the unknown can spark insecurity because of the uncertainty that comes with it. In addition, it is full of fluidity and space for imagination, which can lead to a pessimistic view of the situation.
In trading, this is no different. We recently left an election fraught with uncertainties and mixed hopes due to a highly polarized speculation reflecting on the market. We started the first business day of the year with a lot of volatility, even without a move in the overseas market; In addition, we have a global crisis, war and many other circumstances that inevitably affect the market.
How do we deal with all these circumstances without emotionally sabotaging us? How do you maintain emotional control in the face of so much uncertainty?
How to be profitable in instability and uncertainty, sideways, bear and volatile markets?
The first suggestion, and I think the most important, is to work hard on your personal problems, on beliefs, so as not to disturb the decision-making process and thus the negotiation.
Continue after the announcement
Second, you need to create a plan that will guide decisions. In it, consider an overview of the framework affecting the market you will be trading, as well as clarity of the method you will maintain to identify potential errors in time.
In general, adopting a single trading strategy generates an edge and agility in decision making. But no single strategy will always work well in any given market condition.
This is the caveat to developing a strategy that works well in different market conditions. Among the many that exist and are known, it is worth defining how each works in different types of markets.
Last but not least, you must stick to your own rules. It is only possible to succeed in adverse market situations if the rules are followed. That is, keep an eye on it if you do what you planned.