Market are on tear past few days after US Election Results and Demonetization of 500 and 1000 Rs note. In order to avoid becoming a casualty of the herd mentality and selling at the wrong time, consider these three strategies to keep your cool in a declining stock market environment. Emotional trading can lead to mistakes that can have major impact on your trading account.
1. Stick with your trading plan and turn off the news. Stop watching new channel, Social Media strict NO in such time. Rumor mongering at its highest. Just stick to your plan and trade with strict SL
2. Manage your emotions. It’s virtually impossible to erase fear, panic, and greed, especially when it comes to money. It helps to have a written plan that you can refer to during times of market crisis—something that can help you manage your emotions and keep a level head.
3.Consider Altering Your Trading Style, Technique, Duration, or Indicators in Volatile Markets — As Volatility increase market moves very fast, in such scenarios adapt quickly be fast in entering and exiting your positions.
4. Sometimes the Best Trade is No Trade
Do not get caught in the mindset of “I just missed the best opportunity” – there will always be another profit opportunity,
Don’t force trades. Don’t chase prices that have run away from you. Don’t trade just to trade.
Additionally, don’t get overconfident and “double up” when things are going well. Too often, when we get on a very good streak in one of our trade recommendation programs, we see and hear of clients who are increasing the amount in each trade by a big amount.
A well needed post for the trading addicts