‏Tips on Staying Calm When the Money Market Collapses

Maintaining psychological balance during trading is important when losing a large quantity of your personal money during forex trading or the collapse in the stock market if you are a stock trader.

This is the way things are going. And markets have ups and downs, as we saw after the spread of COVID-19, the collapse of global markets, especially Wall Street or some emerging markets such as the stock exchange. At the same time, something happened that many considered strange for the currency, a great rise in the yen and a strong decline in gold, despite being considered as safe havens.

The worst thing you can do during the stock market crash is panic and to make emotional decisions that can increase losses.

But if you have a plan to prepare your way of thinking to move forward during the stock market crash, you can avoid decisions that could destroy your trading .

Here are some ideas to help long-term investors achieve psychological balance while trading, resisting emotions, maintaining a track, and ways to deal with sales in the market.

Be ready

One of the best things you can do is to prepare for the next downturn. Remind yourself that in the end there will be a collapse in the stock market. This can help you with mental cohesion and maintain your mental strength when the sales actually come.

In addition, you can also prepare for using something like group strategy or another mechanism that helps protect your portfolio - or at least a portion of it - during the downturn. That way, even if you need money during the downturn, you're really in a good position for that, and the effect will be a little bit smaller.

Review of long-term trends

Take a look at long-term trends. Sometimes investors are busy in the short term so that they do not care about what is happening in the long term. For example, currency traders can pay attention to trading on the hourly time frame and ignore the general trend on the daily frame.

Therefore, your vision will be limited to fluctuations in the short term. In fact, it can be troublesome. However, if you look at long-term trends and remind yourself that the general trend is high or low, this can help you stay calm when the short-term trends are reversed.

Remind yourselfofa possible recovery

While reviewing the long-term trends, you will see that the corrections are part of the trades. Therefore, with the collapse or loss in the currency market or the stock market, or with a decrease in the value of your portfolio, remind yourself that there will be a possible recovery.

(Source: Link https://www.borsaforex.com/التوازن-النفسي-اثناء-التداول/ )