Volatility is one of the most challenging aspects of trading. It can wipe out accounts in minutes or create massive opportunities—depending on how well you understand it. If you don’t know why the market swings the way it does, you’ll always feel like you’re reacting instead of being in control.
A trading plan shapes every decision you make in the markets. You might wonder about the point of writing everything down when you could keep it all in your head. The reality hits when emotions run high during market volatility - your clear thinking turns cloudy, and those mental rules fade away. Ask any successful trader about their early days, and they'll tell you about the costly lessons they learned before they established a concrete plan.
Your trading performance depends on two equally important factors: technical knowledge and psychological readiness. In equal measure, they will affect your results, whether negative or positive.
Mastering trading psychology! What a wonderful concept. But how do you go about developing that mastery in an industry that is constantly fluctuating, sometimes volatile, and often unpredictable?
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