Systematic Advantage #43: Systems make it easy to react when you’re filled with fear.
The fear of losing money or missing out on a big opportunity can paralyze us, leading to rash decisions or complete inaction. But here’s the good news: systematic trading can help us easily navigate these fear-filled moments.
You see, systematic trading is based on predetermined rules and algorithms. These rules guide your trading decisions, so you don’t have to rely on your emotions or gut feelings. When the market gets tough and fear starts to creep in, you must follow your system.
Your system might tell you to cut losses, take profits, or stay put until conditions improve. Because these decisions are based on data and analysis, they tend to be more rational and effective than decisions made in a state of fear. This way, you can manage your investments confidently, even during turbulent market conditions.
