 Hi, welcome to this quick session on how to trade market volatility The reason why we wanted to deliver this session now is because of the huge market swings that we're seeing over the last few days We've had limit down to limit up in the S&P we've had wild ranges within gold both higher and lower and Obviously gaps lower in oil as Russia and Saudi Arabia failed to an agreement a lot of new traders are asking us How do I take opportunity in this type of environment? But most importantly, how do I protect myself from getting hurt? So we wanted to give this quick session on what we call FOMO fear of missing out And the reason why I want to focus on FOMO is because for new traders We believe this is one of the key reasons why they enter into bad trades make poor decisions and end up getting hurt as a result So what is FOMO fear of missing out after years of market calm volatility has spiked back to life Extraordinary markets creates extraordinary opportunity and FOMO is when a trader can see a move They can see a move developing they want to jump on that move and actually that reaction is too late It's mismanaged It's not well thought out and they get hurt and that leads to a poor Decision-making tree something which I'm going to talk to you about briefly and I'm going to talk to you about How can you stack habits to then limit the damage of that FOMO? So where does it start? Well, it starts with lack of self-awareness and this is a good depiction here of a new trader The blue arrow is where they buy and the red arrow is where they sell and here you can see quite calm Execution at the beginning of the day, but then we have a large piece of economic data and the trader goes short This is the euro versus the dollar gets stopped out and then sees the market go their way And I don't know whether you've had that experience before but it's incredibly frustrating and they've seen it and that leads to a whole path of mismanaged execution random execution Until they can't really trade anymore and you can imagine that happening on some of the markets that we've seen recently You know on some of these we're turning on a sixpence here Let's say if you had a really bullish view on gold You could have been spooked out of all your positions here only to see it move higher again Now only to see it move lower and really the kind of moves We've not seen for years which can create a lot of frustration and every time you can see one of these moves It's very common for a new trader to think they're missing out and they're going to jump on it And maybe they're going to start getting long for example around here because they think we're going to break 1700 and they get stopped out and then then then it's a disaster You know you can really start getting topped and tailed if you don't manage your FOMO So why can it lead to further losses? Well, it's not actually just on on the loss of the trade that you've missed out But imagine this is a kind of decision-making tree and ideally, you know You want to be making good trading decisions all of the time But after you've had a shock after there's maybe a negative event everything, you know You've probably seen it you're watching every price You're watching every single movement much more closely and that negative experience can then lead to a future path Of negative decisions because you've allowed that negative experience to then pollute your further actions I want you to not do that. I want you to manage yourself better So you can set up a system of habits that saves yourself from the worst of yourself when it comes to trading volatile markets How can you manage your FOMO? First of all recognize the emotional flag So you know yourself well when you have that emotional impulse when you when you see a move that you want to jump on Or when you hear that others are on a trade that you've missed or when you've been stopped out of a trade That actually turns out that it could have gone in the right direction You you must be able to recognize that emotional impulse and as soon as you do Rather than expecting yourself to have the willpower to then do the right thing and be patient and choose the next trade What I want you to do is try and embed a rewarding habit So as soon as you've had that impulse do something that's easy and simple and rewarding and feels good That is not trading it might be go and get a glass of water Make yourself a cup of tea Stretch your back whatever it might be but it's not trading and it's by following that one habit by habit stacking It gives you time to breathe to save yourself from yourself and then reflect on the fact that more Opportunities will come you don't have to jump straight back in and just give you that higher level of thought It's harder to do this when it hurts of course But when it hurts, that's definitely when you don't want to rely on your willpower because with every nerve and sinew You'll be wanting to jump into the markets and think that this volatility is going to work Try and understand dopamine, you know this after all trading and volatile markets is exciting and it's fun But you don't want trading to be exciting You want it to be accurate and disciplined and thought through when you first trade in a volatile market You know you the queue and the craving and the response the reward comes as soon as you're involved in that volatility The next time it happens actually you're getting that reward Here right at the queue and the craving stage you're getting that dopamine hit really early on and you need to try and recognize that It's this feeling. I want you to recognize so you can say okay. I'm excited I really want to take involved get involved in this opportunity But rather than jumping in there and then I wanted to have be able to to think it through and and that really comes from habit stacking So make it easy an emotional trader might lead themselves directly to an undesirable outcome This might be over trading. This might be taking too much risk. This might be moving stops in the volatile market Ideally you want to have the discipline to have a desirable outcome when there's so much market opportunity out there in Order for you to do that I want you to take this advice when you feel that emotional flag that has led to poor decision-making in the past Try and stack easy and rewarding habits That's not necessarily trading but it could be as quick as taking a deep breath to then lead to a desirable outcome This forms part for much wider journey of continuous improvement and control when you experience this habit stacking Review your trading Review how it's impacted your trading and if you conclude that it's doing the right thing and it's having a positive Impact and then we put this arrow as a red arrow because this is the hardest one to do, you know, do the right thing Implement it continue to go through a continuing learning a continued cycle of growth This is what makes traders that have traded for longer Those of you like me who have seen two crises now traded through this volatility Better equipped to deal with this type of environment because we've been through these learning circles already Why now as I've just suggested Over 50% of all those in the fund management industry now have traded for less than 10 years Which means they haven't yet really been tested They haven't been tested to their core of how they manage themselves within an environment of uncertainty and risk And I want you guys to have the advantage of self-awareness and habit stacking that comes from that type of experience If you've enjoyed this quick session, please do have a look at all the further videos down on this page From Piers Curran talking about fundamentals Anthony Chung about how to trade the news It's absolutely relevant to this market environment We've got a huge program here with all the very best of amplified trading's content now available to you online If you like the subject titles if you want to join us and also have regular catch-ups with us here on the trading floor It's all part of this subscription. Please do enroll now and I look forward to seeing you in there. Thank you very much Good luck with your trading