The end of the year 2020 can be critical on the markets. We anticipate a bit a troubled period by reminding that it is possible to make good trades during a crisis. But how do you find those opportunities?
Never compromise too much when it’s time to act on the market
Stay sober and use only a predetermined ratio of your portfolio for your purchases and sales so that your commitment remains low risk and in relation to the chaotic reality of the moment. Your principle of uncertainty, which we defend at Orbital Trading, must guide and mark out your approach.
Do not make any committed prospective in front of the events taking place on the market
This could take an irrational tangent that would be totally out of phase with the elements of your initial analysis.
In addition to the fact that it is necessary to have in mind and in your playbook certain scenarios that could occur, you must know how to remain neutral and untroubled by keeping a distance in order to disengage your emotions from the difficult decisions that you will certainly have to make. Decisions based not on your hopes for a particular scenario to prevail, but rather on the visible patterns foreshadowing the market jolts on the charts.
Be smart enough to start your reasoning with fundamental tools, but then cut through the existing imbroglios with your analysis and technical tools, according to the Orbital Trading method in effect.
Think about how you will overcome stress and failure, dismay and disillusionment
Know how to sift and contain your negative feelings and frenzy if success exceeds your expectations.
In times of crisis, the captain must remain calm because his only objective is to get through the storm safely.
So think medium to long term and not just a few negative or positive events.
Keep your playbook up to date and readjust quickly after your mistakes.
Force yourself to be more rigorous and more disciplined
Review your analysis so that you don’t overlook any important details.
Take care of yourself, de-stress
Do some sport, meditation. Eat and sleep well and respect a schedule. Think of your performance as an unalterable whole of winning conditions added together, downstream and upstream of the market.
You are the torchbearer. Respect yourself! Don’t forget your loved ones in the stressful exercise of trading in times of crisis. Money is a tool, never an end in itself.
Knowing when to suspend your trading activities is sometimes necessary
This wisdom of the moment can even be salutary. When things are not going well, be humble and take the time to recover psychologically. Don’t wait for the radical loss of your poorly managed capital through increasingly disjointed action that is at odds with your initial management rules.