Panic and stress work well together to symbiotic on a trader's emotions, so keeping calm when other traders and investors become emotional gives you a trading advantage...

When they make a mistake, you are making an informed trading decision again. When they are panicking, you are calmly locking your profits. When they are stopped out with a loss, you are again in the game at the right time.

Calm is the ability to make logical, rational, rational, and effective decisions, not emotionally driven mistakes in the marketplace.

If you are just trading your system alone most of the time quietly, then great, we have nothing to talk about. But, if you are watching the financial news media discussing the market, or reading blogs that analyze why the economy or the monetary system has nearly collapsed, then that could be causing the problem. panic and let your imagination bewildered about the bad things that might happen. The more people panicking, the greater the impact on the market and the more massive sell / buy action increases.

Staying calm and recording your signals will give you many advantages. Why? Because once you create your own biased stories out of fear and panic about what will happen, you will be locked in those ideas. This is extremely dangerous because it can cause you to catch the wrong trend for days, or even weeks.

The calmness reduces the "frequency of sound" of the emotion as the panic seems to be turned on so high that you can hardly hear the trading plan in your mind anymore. but it is harder to follow the plan. Positioning is another factor related to your emotions and ego. You should never trade so big that it will take away your peace of mind and your clear thinking about a trade.

Your trading needs to be treated as if you were running a business. You will play as a manager, not a pure gambler. Developing your system will be like a trip to a quiet library and trading your system will be like testing your theories with an open mind.


After all, the financial news media's ultimate goal is just to drive traffic to advertisers' revenue. Because of that, they can not help but grab the headlines to attract the eyeballs as well as the attention of readers. Chaos will make people curious, while the essence of calm is boredom, monotony. But remember, a good trading risk: reward ratio won't be generated based on too many jamming signals!

Your systems have to be your own signals and they have to have a quantitative advantage somewhere, not the signals of other traders. It is your ability to follow a profitable trading system during the market crisis that will be your own advantage. At times like that, the panic is utterly futile!

When it comes time to make an entry and exit decision, focus only on your trading system, not on the news, social media, or other traders! Do your own research, listen to charts and follow trends, that's the best route you should take.

It can be said that news, politics, opinions, predictions, and ego are among the many traps in trading. You should be alert and calm to focus on the price action - which should take priority first. By doing that, you can create a distinct advantage from the majority, especially in turbulent times!