What's worse than the Coronavirus ?

Yes, there has not been a day gone by without receiving updates about this fearsome coronavirus. Just checking the number of cases and deaths can affect one's trading emotions.

The fear of missing out from participating in the market can be so terrifying and overwhelming that one might just jump in to buy or sell without going through their logical process. Yes, head over heart matters. But as human beings, we are emotions charged as well. So these mixed emotions of fear, greed, excitement, suppression, etc might overtake your usual trading strategy and lead you on.

For example, the market was heading south before China implemented a new monetary stimulus, injecting trillions of yuan to prop up the market. The pull back was almost 90 degree and caused confusion to many. Is the market back to its equilibrium? Is the bull ready to charge again ? Or is the bear merely taking a break before its bear attack again?

One strategy I used is to reduce the positions I hold and also the position size as well. Just because you missed out the initial action does not mean you can play catch up by increasing your lot size. If you are lucky/right , then you make some good profits. But, what if you are wrong? That means a 100 dollar loss becomes 200 now and that do some damage to your mindset.

You may not be satisfied with the outcome and wanted to seek revenge and waited for another opportunity. By now, your rage and unhappiness take over the logical mind and very likely you will ignore the rules that served you well , that provides your profits.

Stay calm and stick to your rules. If you had made mistakes , take it in good stride and accept it as part of business operation costs. But before you hit the buy/sell button too quickly, pause for a moment and ask the question - why are you buying/selling? What's your reasons ? If you are satisfied that you have fulfilled your own criteria, then you are emotionally balanced and should a loss occur, you can take it well.

I pray that joy, peace and abundance be with all of you , traders. GBU
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