#TradingPsychology Staying Calm in the Storm: How to Stop Emotions from Ruling My Decisions

Extreme volatility in the markets is a real test for any trader.

At such times, emotions like fear, greed, and FOMO can cloud your mind and lead to impulsive and rash actions.

How do I deal with this?

First of all, awareness is my first step. I try to recognize the first signs of emotional arousal. As soon as I feel excessive excitement or the urge to do something urgently, I pause.

Then my clear trading plan comes into play. It is my kind of compass in the stormy sea of market fluctuations. Pre-defined entry and exit points, position sizes, stop-loss and take-profit levels - all this helps me make decisions based on logic and strategy, rather than on momentary emotional impulses.

As for cognitive biases, I am constantly working on overcoming them. For example, confirmation bias (when we tend to look for information that confirms our opinion) I try to counteract by actively looking for counterarguments and alternative scenarios.

Regular analysis of my trades, both successful and unsuccessful, helps to identify systematic errors in thinking.

Discipline is a key element of my strategy. Sticking to a trading plan, even when it seems difficult, is my unbreakable rule. I view trading as a long-term process, where emotional decisions in the short term can cause significant damage.

To maintain discipline, I am helped by:

Regular analysis of the market and my own portfolio, which allows me to keep my finger on the pulse, but not succumb to short-term fluctuations.

Avoiding excessive monitoring of the market. Constantly contemplating charts can provoke emotional reactions.

Focus on the process, not just the result. It’s more important to stick to a strategy than to chase instant profits.

Ultimately, managing emotions and maintaining discipline is a continuous process of self-improvement. Each successful period of volatility strengthens my confidence in my own approach and helps me remain calm even in the most difficult market conditions.