How To Articles
How not to give into the panic?
- by Anna K.
The summer is foregone and we are left wondering – what happened? So many things took place in the course of these 3 months that it is fairly difficult to recap all of them right now. But the main things are probably Trump failing to hear China and subjecting the country to more and more tariffs, Apple, breaching through trillion-dollar market cap mark, OPEC meeting, agreeing to boost oil output numbers and dozens and dozens of other occasions that shook up the markets.
Looking back at the turbulent summer we are left wondering whether the rest of the trading year is going to be just the same. And we are also faced with a very important question – how does one not panic in the situation like that? With the river of bad news that is pouring at us through mass media it is hard to stay calm and look at the situation at the markets clearly.
First of all, the panic comes when we hear the words ‘financial crisis’. Memories of financial crisis that took the world by storm in 2008 is still too fresh for us to endure the next one already. But, sadly it is the way markets work. Ups and down are usual pattern for the world’s economy, so it is only natural that after a period of growth a fall will come. We are only left hoping that the fall will not be hard.
Second it is important to remember that focusing on bad news only has never brought good to any of the traders. in our world it is of paramount importance to look for news from all the possible segments of the market from as many markets as possible. Remember, that if dollar fell, it doesn’t mean that there no growth in any other segment of the market. Oil, gold and various other assets are for sure to go up. Just like with any other asset. Taking in as much information as possible from various trusted resources is very important for being a successful trader.
And one of the most important rule in order to not to give into panic is to go out of your comfort zone when it comes to trading. If you usually trade with shares of 2 or 3 companies and with a couple of currencies that just haven’t been performing all that good lately, just turn your attention to other assets. There are dozens of them in the markets and it is quite impossible that all of them are going to perform really bad at the same time.