Even a small hit in the stock market cascades into something big, thanks to the sensational mainstream media. This soon erupts into paranoia, FUD and panic selling. The recent crash and massive selloff around the world very well reaffirms this long-existing fact, when countless traders left their long-holding positions in big losses.
One of the first things the experts teach beginners is to understand the market well and gauge the emerging trends to avoid FUD (Fear, Uncertainty, and Doubt), in order to make sensible trades. If you’re just starting in this game, aside from attempting to groom your technical prowess, you must also put distinct effort on distinguishing news from noise, in order to avoid panic selling.
There are some steps you can take starting today to fight back your urge to panic sell your stocks even when things are very bad:
1. Find a reliable news source
This is the most important step in this process. It is imperative you have a reputed and reliable source of information. Even when consuming news from top financial websites, check the authors’ names, do a background check on them and see do they have the right track record. Find at least 4 different trustworthy source of news. When someone says something, do a cross-check with the rest. Don’t believe anything and everything you find on internet.
2.Take hands of best stock trading company
At times, when things look uncertain, everyone is in fear and your own technical analysis is failing you, the next best option is to take hands of an expert. With years of experience under their hat, you can bet on these experienced professionals to help you through the tough times. With their right advice and assistance, you can easily beat FUD and tame the tempt of panic selling.
3.Maintain a trading routine and journal
A smart and successful trader always remembers her/his trade. These individuals always record their buying-selling actions in a journal. And they repetitively learn from their past records. This brings consistency in their trades, and consistency nourishes efficiency and sustainability, which then result in sane trading strategies, away from FUD and extreme emotions. So if you aren’t already pushing yourself to maintain a trading routine and regular journal, start doing it now. The rewards will span beyond your expectations.
These are 3 extremely simple steps to fight back the urge of panic selling and to keep yourself cool in the latest sell off. Implement them starting today and induct yourself into the league of smart and profitable traders.