How to Maintain Trading Confidence During Uncertain Times 

Uncertain times happen in life and the stock market is no exception.

Most of us have more questions than we do answers.

I’m sure we are all wondering about things like:

  • What will happen with interest rates?
  • How will the current economic climate affect how much consumers are spending?
  • How we should prepare for any changes in the market?
  • What we can generally expect in the upcoming weeks, months and years?

I know many of us may be anxious in the face of uncertainty like this, but now is the time to boost our confidence, not bury our heads in the sand hoping for the best.

You Need A Trading Plan

We need a trading plan and be determined to adhere to it. A trading plan can keep our focus pointed in the right direction and not become fixated on the idea that we have to be right, no matter what.

The last thing we want to happen is to become lured away from rational thinking because of biased views of the market. Our plan should include a clear objective and a vision of what direction a trade will take. We should consider what might happen if the market goes against a trade we initiate and what warning signs we should look for that might indicate that the market could turn on us.

Related Article: What’s the Recipe for a Successful Trading Plan? (Let’s Create One Together)

The Psychology Behind Uncertainty

Something we don’t want to accept is the idea that we are powerless and at the mercy of the ups and downs of the market. Martin Pring wrote in his book “Investment Psychology Explained,” that “we do not like uncertainty. The need to have a firm opinion of where prices are headed is therefore a mental trick that many of us use to eliminate this uncertainty.”

We tend to want to hold on to a sense of control when we are in uncertain times – and often to our own detriment.

We may start thinking that we have control over everything we might come up against, giving us the false notion that we are more powerful than we truly are.

And there are those of us that might form opinions of what will happen with the market and be so inflexible that despite evidence to the contrary, we discard anything that contradicts our opinion.

Stay Calm and Keep an Open Mind

However, it is in uncertain times that we must stay calm and keep an open mind and be willing to deviate from our opinion if more reliable information becomes available. This is where we can refer to our trading plan and be confident in the fact that we are prepared and know what to do and when we should do it.

Of course, it is impossible for us to control everything, but especially in times of uncertainty, we should strive to control what we can. We also need to accept that there will always be uncertainty and outcomes that we are unable to influence. Having a plan and sticking to it is a major component of taking control. We will know what to do to minimise risk, what to do if we do have some losses and give us the reassurance that if we did experience a major setback, we can bounce back.

If we can take control over the things we are able to control, accept that there will always be situations we cannot control and approach trading in a calm, rational manner, we will have the best possible chance for success.

Related Article: How Stress may be Sabotaging your Success as a Trader (+ 3 Tips on what to do if you are Stressed Out)

Start Your Trading Plan Here…

Contrary to what most people believe (including many financial advisors and planners), it is possible to foresee market crashes before they happen.

In fact, many of the world’s best fund managers know this, and that is how they are able to generate healthy profits during market downturns.

If you’d like to learn how my students and I were able to avoid the Global Financial Crisis and the COVID-19 market crash with my 3-Step Profit With Protection™ trading plan, I’d like to invite you to my FREE upcoming online Masterclass “How To Predict Any Market Crash, Protect Your Wealth and Profit Safely”

It’s a highly interactive class, complete with your own downloadable workbook, and I guarantee you’ll walk out of the Masterclass with a completely different filter of the trading and investing world.

If you’d like to join me, book your spot here, and I’ll see you on the other side.


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