Panic in Trading: How Not to Lose Control
Market panic is a state when a trader acts under the pressure of emotions: closing trades without analysis, entering the market chaotically, fearing losses, and ignoring strategy.
Reasons for Panic
• sharp volatility;
• trading without a plan;
• overly large positions;
• influence of news and the crowd.
Consequences
• rapid depletion of the deposit;
• missed profits;
• formation of harmful habits;
• loss of confidence.
How to Cope
• adhere to risk management and use stop-losses;
• pre-write an entry and exit plan;
• keep a journal of trades and emotions;
• train psychological resilience;
• take breaks during times of increased anxiety.
Conclusion: Panic is inevitable, but it can be controlled. A successful trader is not one who always predicts the market, but one who knows how to remain composed.
