Today, early in the morning, I received an audio clip from a friend, a non-Brazilian on vacation in Brazil, who was trying to make sense of himself in discrete phrases, which were a mixture of Portuguese, Spanish, and possibly Castilian, repeated as follows: “Brazil is a country as exciting as the choices are. .. unbelievable … but … not as you say … it is unbelievable, it is not for the faint of heart … so many feelings”
Yes, he experienced and shared the whirlwind of emotions we had this past weekend: anticipation, anxiety, fear, and many more surprises.
In the financial market, election periods are preceded by emotional turmoil due to potential market volatility and different expectations about who will hold the appropriate public office.
Economists claimed that this year’s volatility in the pre-election period was not as severe as expected… “Really…?! How is that then?!”
However, the issue here is not volatility, but how traders and investors will behave in the face of increasing volatility and uncertainty without being overwhelmed by emotions and expectations. Whether they will act like “non-Brazilians” unaccustomed to emotional turmoil or whether they will act like experienced professionals who enjoy the benefits of emotional intelligence.
After a few days of trading, it is very easy to look at the analysis tool used and decide the best decision to make. However, when everything happens, it is not so simple. Time works against negotiators because, in many cases, a quick decision is the only way out. And quick decisions are not always accompanied by technical fundamentals.
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Unfortunately, it is common for most of the time that knowledge gives way to emotions. The advantage will go to whoever has the power to prevent the ecstasy from taking over the situation.
This self-control is possible because practice and experience lead to the perception that moments of crisis will always be present and that preparation for each one, no matter how severe, is essential. The ready negotiator is the one who masters not only the technique, but above all, has his own control.
The prepared trader and investor knows that neither “dramatic country… electricity” nor “heart” nor “too much emotion” scenario can cause him to stop acting with reason – self-control and proven technical fundamentals.
respect your boundaries (emotional, financial, and technical); adhere to your plans; Develop self-awareness (to correctly identify and deal with emotions); And controlling expectations (facing reality with their plans) are some of the techniques that experienced traders and investors adopt to stay true to their own rules and not succumb to euphoria, putting their rights at risk.
In short, perhaps few moments are as intense and sudden as they are in October 2022. But preparation and self-knowledge will always be a guide and ensure that they allow you to balance expectations, avoid euphoria, manage anxiety, and keep control of the situation at hand. Any scenario.
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