I was talking to another trader and they were feeling anxiety about the increasing volatility in the markets they trade. Traders hope and pray for volatility and when it finally gets here traders need to make the adjustment. Monetarily and otherwise. StockSage wrote Trading in a Volatile/Transitioning Market Environment. Whether the rotation sticks or not I do not know but he had some good points at the end.
Is volatility fueling the anxiety or is volatility just making it easier to see there is a problem?
If the body/mind does not eventually adjust it is a sign that the problem is internal. Just like if the knee does not start to feel better after a couple weeks it is probably something serious.
The benefit of experience is that you can see the problems forming, but experience does nothing for the will to change. Don’t waste it.
If it is just volatility that is causing the anxiety, remember cash is a position too. There are few things you can control but risk profile is one of them.
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