If you\u2019ve read Part 1 about position sizing and Part 2 on liquidity, then you already know how to adapt to the mechanics of volatile markets. The next great tool in your arsenal will be patience.<\/p>\n
Your biggest opponent in wild markets is your own\u00a0mind.<\/em><\/p>\n In volatile markets, your emotions can easily get the best of you. Fear of missing out (FOMO) is one of the most dangerous emotions that drives poor decisions.<\/p>\n \u2588 FOMO (Fear of Missing Out) Hits Hardest in Volatile\u00a0Markets<\/p>\n Wild price swings, like 300\u2013500 point moves in the Nasdaq or Bitcoin jumping $1000 in seconds, can make it feel like easy money is everywhere.<\/p>\n You can quickly get the overwhelming temptation to chase moves, especially when it seems like you\u2019re missing every opportunity.<\/p>\n This is where most traders\u00a0lose.<\/em><\/p>\n Let me state some harsh truths that I had to learn the hard way through many\u00a0losses:<\/p>\n Volatility doesn\u2019t equal opportunity.Fast moves don\u2019t mean easy\u00a0trades.Most wild price moves are designed to trap liquidity and punish impatience.<\/p>\n The true reality is that the market wants you to overreact in these conditions.<\/p>\n It wants you to buy after a big\u00a0move.It wants you to short after a\u00a0flush.It thrives on you being emotional, chasing, and reacting.<\/p>\n Because reactive traders = liquidity providers for smart\u00a0money.<\/p>\n Every single trader has made this mistake\u200a\u2014\u200anot just once, but over and over again. Jumping into the market after a big move, hoping it will continue\u2026 but what usually happens? The market snaps back and stops you\u00a0out.<\/em>Can you relate? Share your story or experience with this in the comments\u00a0below!<\/p>\n \u2588 What Experienced Traders Do\u00a0Instead<\/p>\n \u26aa They Know the First Move is Often the\u00a0Trap<\/p>\n Breakout? Expect a\u00a0fakeout.Breakdown? Expect a snapback.New high? Watch for stop\u00a0hunts.New low? Watch for a\u00a0flush.Effectively speaking, pro traders don\u2019t chase the market. We wait for stop hunts to complete, liquidity grabs to finish, price to return into their zone, and for confirmations before entering the\u00a0market.<\/em><\/p>\n \u26aa They Train Patience Like a\u00a0Skill<\/p>\n Professional traders aren\u2019t more patient because they\u2019re \u201cspecial.\u201d We are patient because we\u2019ve learned the hard way that chasing leads to\u00a0pain.<\/em><\/p>\n \u26aa They Know When Not to\u00a0Trade<\/p>\n It is bad to trade when there\u2019s no clear structure, no clean confirmation, if the spread is too wide or when the liquidity is too\u00a0thin.<\/em>Instead, pro traders let the market come to them, not the other way\u00a0around.<\/em><\/p>\n \u26aa They Turn FOMO into Confidence<\/p>\n Instead of saying, <\/em>\u201cI\u2019m missing the move\u2026\u201d, I recommend you\u00a0think:<\/em>\u201cIf it ran without me\u200a\u2014\u200ait wasn\u2019t my\u00a0trade.\u201d<\/em>\u201cIf it comes back into my setup\u200a\u2014\u200anow it\u2019s my\u00a0trade.\u201d<\/em><\/p>\n \u2588 So, what have we learned\u00a0today?<\/p>\n Volatility triggers FOMO. FOMO triggers bad decisions. Bad decisions trigger losses. \u2588 What We Covered\u00a0Already:<\/p>\n Part 1: Reduce Position\u00a0SizePart 2: Liquidity Makes or Breaks Your\u00a0TradesPart 3: Why Patience is Your Biggest\u00a0Edge<\/p>\n \u2588 What\u2019s Coming Next in the\u00a0Series:<\/p>\n Part 4: Trend Is Your Best\u00a0Friend<\/p>\n \u2014\u200a\u2014\u200a\u2014\u200a\u2014\u200a\u2014\u200a\u2014\u200a\u2014\u200a\u2014\u200a- The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.<\/p>\n All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual\u2019s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.<\/p>\n Mastering Volatile Markets Part 3: Why Patience is Your Biggest Edge<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" If you\u2019ve read Part 1 about position sizing and Part 2 on liquidity, then you already know how to adapt to the mechanics of volatile markets. The next great tool in your arsenal will be patience. Your biggest opponent in wild markets is your own\u00a0mind. In volatile markets, your emotions can easily get the best […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-60724","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/60724"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60724"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/60724\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
To win long-term, you must stay calm, selective and professional. Let other traders be emotional liquidity. That\u2019s how you survive volatile\u00a0markets.<\/p>\n
Disclaimer<\/p>\n