Author Topic: Stock market turmoil- how to cope  (Read 795 times)

BWS

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Stock market turmoil- how to cope
« on: October 29, 2020, 03:46:53 PM »
With covid, Brexit, and US elections ahead, the stock market is very much on edge and is swinging around, often just on rumours.
The article below gives some good advice on how to cope with this, both financially and psychologically.

http://t.email.hl.co.uk/r/?id=h238587dc,36a2eac7,36a3123a&cid=halDM149708&bid=595953628&e_cti=5725698&e_ct=T&utm_source=AdobeCampaign&utm_medium=email&utm_campaign=EO911_Storms_29.10.20&theSource=EO911&Override=1
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

Kaitsu

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Re: Stock market turmoil- how to cope
« Reply #1 on: October 29, 2020, 05:54:37 PM »
The article below gives some good advice on how to cope with this, both financially and psychologically.
This article is aimed at stock market investors but the points raised are equally valid and relevant to retail traders, with a little adaptation, whether it is indexes or forex or other instruments!

All good points and worth thinking about how they might apply to one's own trading and circumstances! Thanks @BWS
Ships are safe in harbour - but that is not what ships are for......

BWS

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Re: Stock market turmoil- how to cope
« Reply #2 on: October 29, 2020, 07:13:50 PM »
Thanks Kaitsu.
If I get time tomorrow I might extract the salient points, removing or amending where they explicitly refer to stocks.
There are some very valid points which can be adapted, and this would make them relevant to a wider group of traders.
"I wouldn't say I'm the best manager in the business, but I'm probably in the top 1" - Brian Clough

Kaitsu

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Re: Stock market turmoil- how to cope
« Reply #3 on: October 29, 2020, 07:36:36 PM »
If I get time tomorrow I might extract the salient points, removing or amending where they explicitly refer to stocks.
There are some very valid points which can be adapted, and this would make them relevant to a wider group of traders.
That would be useful, I think!
Those five points can easily be adapted as:
Staying calm and focused even when the market behaves differently to expected
Determining beforehand one's acceptable risk exposure and sticking to it
Setting one's earnings targets and expectations as well as risk/reward parameters
When it is worth scaling in/out of positions
Deciding which instruments to concentrate on and/or specialise in.

All useful stuff! :D
Ships are safe in harbour - but that is not what ships are for......