Market Snapshot

Sandy Jadeja explores upcoming trading opportunities. Market Snapshot financial crisis has hit the world stock markets. Were you prepared for the opportunity or did you miss the major moves. Even worse were you caught on of the time physically practising what they were seeing. As simple as it sounds, many people around the world attest to this as a solid practice that can generate quality results.

and guide them step-by-step to deal with the difficult times that might be ahead.

As the markets have declined sharply, instead of being emotionally attached we should probably practice the art of mindful the wrong side?

In the United Kingdom, recent news headlines have been about turmoil in the streets as rioters took over cities across the country; and turmoil in the markets as sharp declines took the stock indices lower. Both situations were emotional and required tactical and strategic thinking to resolve.

In an emergency, if one is not prepared and has no plan of action it can be devastating and difficult to grasp what is happening and to take emotional control. As you have probably experienced from your trading, once emotions get in the way thinking becomes cloudy and we are prone to making the wrong decisions. Remaining calm is essential.

I remember reading, some years ago, about how Soviet athletes were taught the 80/20 rule. No, this was not about business but about the physical versus the mental. During athletic events, many USSR athletes were able to accomplish astonishing results. They were breaking world records – and athletes around the world were desperate to know their secrets. The athletes were taught to spend 80 per cent of their time not in a gym or working out, but visualising. They were taught to look inside their minds and to practise each routine, step-by-step, to perfection. Then they spent 20 per cent

We noted previously that the FTSE A Figure 1: FTSE 100 Wekly

Right now, in the turmoil we are facing as traders or as individuals, it might pay dividends to stop – think – and then act, rather than act in a state of panic. We can place ourselves in a state where we can practise in our minds what to do if a crisis takes place in the markets. Instead of acting impulsively and emotionally when disaster strikes, we can take control of our thoughts trading and deal with the situation as it unfolds, seeking opportunities rather than becoming an emotional wreck.

From our previous article (Jul/Aug 11 YTE UK) we were ready and waiting to take part in a bearish move on the FTSE 100. The markets have now rewarded us for planning, patience and being on the right side.

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YOURTRADINGEDGE UK

SEP/OCT 2011