Does it Matter?
Every election is special with our political system and I am at awe with our current election, where every vote counts – literally. With all the uncertainty, one thing is certain. This election will take longer than others to confirm. So, what do you do as a trader? Here is my two cents.
Give it more time – be patient
A lot of the time, fast moving markets produces more opportunities as well. However, when things move fast either up or down, the day to day psychological swing are also emotionally hard to cope. If you are entering into a setup right now, be sure to have the mental resilience to be patient and let the trade work out and continue to use disciplined targets. Given that this election will take longer to figure itself out, its not a bad idea to position for longer time to allow yourself the ease for success.
Reduce position size
Another method to reduce emotional instabilities with volatile market events is to reduce position size or reduce number of positions. That way, you can still be patient, disciplined and consistent with you stop and target. Trading should be relaxing and enjoyable. If you find yourself stressed out, its probably a good time to reduce your positions and find your comfort zone again.
Cash is King
Sitting in cash is a great position in uncertainty. Being in cash does NOT mean being idle. It means you are preparing to pounce at the next big opportunity, and you are conserving your mental energy for it. If you feel like you are missing out, do not punish yourself emotionally. Its great to relax while prepare for the next setup to trigger. When that time comes, you’ll have the election behind you, and everything in your mental state should feel secure.
Pearl Li. The Theta Finder. In the Making.
Pearl Li previously has been a product management professional for more than 10 years working at well-known companies such as Amazon and Nielsen Company. She took the leap in 2016 with Elite Legacy Education to learn about building long term wealth through financial market trading/investing. In 2018, Pearl happily left her job to pursue investing/trading fulltime producing theta style trading that generates monthly cashflow. She is thrilled to be a voice on the Tackle Trading platform to share her transformation as she goes through various phases of her growing experience.
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