Hey Sisters! My Dearest Babies!
Been staring at your screen trying to figure out the market lately, and just feel like barfing?! 🤢 The market’s been up and down like a rollercoaster 🎢, or like walking through a mud pit, with absolutely no clear direction! Every day feels nerve-wracking, terrified you’ll buy high again or sell at the absolute bottom! OMG help!!! Is this what they call “market volatility”?! Seriously, I’m done! 😫
I completely understand how you feel! Because! I! Lived! Through! That! Phase! too! I’ve experienced countless whipsaws, countless dramatic episodes of “buying high today, getting trapped tomorrow” or “cutting losses yesterday, only for it to surge today”… countless times until I found that key 🔑, my own personal “One-Move Instant Solve” method for navigating volatile markets!
Listen up! This isn’t some mysterious code, or some indicator that suddenly started working wonders. Instead, it’s a set of philosophy and practical steps combined that will not only help you survive the volatile period but also quietly build strength and prepare for the next clear trend! 🏆
Want to know? Want to escape the anxiety and losses caused by volatility? Then read this post patiently! This is absolutely some of my deepest, most effective wisdom, personally tested and proven to help you bid farewell to your current confusion and pain! 💪✨
🌟 What Exactly is Volatility? Why is it So Tormenting?
First, we need to know who the opponent is! “Volatility,” oh, that means the market price fluctuates back and forth within a certain range, with no obvious upward or downward trend. It’s not like a one-way uptrend where you buy and are likely to make money, nor is it like a one-way downtrend where staying in cash or cutting losses helps you avoid risk.
Imagine this: A one-way uptrend is like sailing with the wind, you just spread your sails and go; a one-way downtrend is like facing a headwind, you furl your sails or dock at a harbor. But volatility is like paddling a canoe in shallow water with very little wind 🛶. The boat rocks back and forth, moves very slowly, and easily gets stuck! 🌊
It’s tormenting mainly in a few ways:
- Emotional Rollercoaster: It tortures your emotions repeatedly. Today it goes up a bit, you think the trend is here, you chase it! Then tomorrow it drops back down, you get worried and want to sell! The day after it goes up again, you regret selling… This constant swing between joy and sorrow is even more heart-stopping than a rollercoaster! ❤️🩹
- Easy to Get “Chopped”: Major funds (the “莊家” or market makers) love to “fish” during volatile periods. They create all sorts of false breakouts and false drops, making you chase when you think a trend is starting, only to turn around and trap you; or when you’re in despair and cut losses, they start pushing prices up again! They’ll shake you out completely! 🧺
- Technical Indicators Fail: Many technical indicators that work well during trending markets, like moving averages, MACD crossovers, etc., frequently give false signals during volatile markets, leaving you clueless, chasing highs and cutting lows, getting hit from both sides! 🥊
- Feeling Like You Can’t Make Money: And you might even lose money. Watching your account value stagnate or shrink can lead to huge psychological disappointment, making you more prone to anxiety and impulsive trading. 📈📉
In short, volatility is a market phase that is “directionless, full of hidden risks, and emotionally stressful.” Many people lose their patience and capital during volatility, eventually leaving the market in despair.
🔥 What is My “One-Move Instant Solve” Core Strategy? 🤫
Alright, key point coming up! 🚨 My one move that allows you to “lie flat and win” (here, “lie flat and win” doesn’t mean making big money, but rather staying put without unnecessary action, preserving your assets, maybe even gaining a little, and preparing for the next clear trend) during volatility is centered around one core idea:
“Volatility Management = Risk Avoidance + Patient Waiting + Opportunistic修炼 (Self-Improvement/Training)”
Yes, you heard right! The first step in dealing with volatility is not to predict where it’s heading, nor to trade frequently trying to catch every small ripple! That’s too difficult, and you’re highly likely to fail!
My “One-Move Instant Solve” is about acknowledging and accepting that volatility is a part of the market, and then shifting your focus from “predicting and trading direction” to “managing risk and building energy.” Broken down, it consists of several key points, each requiring deep understanding and practice:
1. Acknowledge Reality: Lower and Lock Down Your “Expectations” and “Action Frequency”
- Expectation Management (Mindset Adjustment): The biggest mistake during volatility is still fantasizing about catching daily लिमिट up moves like in a bull market, or perfectly timing the bottom like at the end of a downtrend. Stop! Sober up immediately! In this phase, your primary goal is “not losing is winning,” it’s about “preserving capital.” A small gain is a pleasant surprise, and a small loss that doesn’t devastate your capital is also a success. Cut your profit targets in half or even eliminate them, replace them with “capital safety first.”
- [My Experience & Elaboration] I used to be too greedy, always thinking “If others can make money, so can I.” As a result, I chased highs and cut lows during volatility, giving back most of the profits I made during the bull market! After a painful realization, I understood that the market has rhythms. Volatility is the market’s “rest period.” If you don’t let it rest and force it to run, both sides lose. Now, when I see the market starting to churn, my first reaction isn’t to look for stocks, but to take a deep breath and tell myself: Relax, this is not the time to make big moves.
- Reduce Trading Frequency: You can’t predict the short-term swings in volatility, so the more you trade, the higher the probability of making mistakes, and the more times you’ll get slapped by the market! The simplest solution is: Move Less! Or Even Not At All!
- [My Experience & Elaboration] I used to watch the market for 8 hours a day, terrified of missing any buy or sell point. The result was frequent trading during volatility, losing a lot just on transaction fees, not to mention the losses from poor decisions. Now, when volatility comes, I might watch the market for a total of less than 1 hour a day, or even set price alerts and just not look. Use the time you would spend watching and trading to do something more valuable (more on that later!). Moving less not only protects your wallet but also protects your mindset! 🧘♀️ This is a type of “lying flat and winning” – lying flat, reducing unnecessary actions, and winning time and emotional peace.
2. Play Defense and Counterattack: Adjust Positions, Strictly Control Risk, Be Like a Cunning Fox 🦊
- Significantly Reduce Position Size or Go to Cash: This is the most direct and effective risk control method. When the market direction is unclear, why hold heavy positions exposing yourself to high risk?
- [My Experience & Elaboration] My go-to approach for volatility now is: Less than 50% positions! And often, it’s over 70% cash! Yes, holding cash might seem “dumb,” but with cash in hand, you’re not panicked! When the market gives you a clear signal, you have plenty of ammunition to enter immediately. Meanwhile, those who are fully invested and trapped can only watch helplessly, unable to even adjust their positions! Remember: Cash is a position, and during volatility, it’s often the best-performing “asset”! It provides you with unparalleled options and initiative.
- Specific action: If your previous position size was heavy, you can gradually reduce it. Sell stocks that are most volatile and sensitive to swings; keep a small core position in stocks you’re most confident about and would even buy more of if they dropped.
- Re-examine Your Holdings: Use this downtime to carefully check the stocks you hold. Have their fundamentals changed? Did you blindly follow the crowd and buy them? During volatility, stocks with poor fundamentals and those purely driven by speculation are more likely to plummet. Strip off the risk and decisively optimize your holdings.
- [My Experience & Elaboration] Volatility acts like a “demon-revealing mirror,” many stocks show their true colors. Before, I might have thought a certain stock was “cheap” and bought it, only for it to fall even harder when volatility hit. After a painful lesson, I now only hold stocks with stable performance, long-term logic, and ones that I can sleep well holding even with short-term fluctuations. Remember: Bad stocks won’t get better just because the market is volatile, they’ll only get worse.
- Strict Stop Losses/Set Take Profit Levels: While getting stopped out repeatedly is frustrating, during unclear trends, losing a little and exiting is better than getting trapped with a big loss. If you’re lucky enough to catch a small upward move, know when to take profit and lock in gains. No lingering during volatility!
- [My Experience & Elaboration] My most common mistake during volatility used to be not setting stop losses, thinking “it’ll definitely go back up soon,” and getting deeper and deeper in the red. Now, I respect the market more, set stop-loss levels, and stick to them firmly. Even if I get stopped out a few times, it’s better than one large loss that cripples my capital. I also take small profits – accumulating small wins is also a strategy.
3. Seize the Opportunity to Improve: Use the Volatility Period for Self-Improvement and “Training” for the Next Battle
- Deep Learning and Research: When the market isn’t rewarding you handsomely, it’s the best time to feed your brain!
- What can you do?
- Review Historical Market Data: Look back at past bull markets, bear markets, and… most importantly! Volatile periods! See how long previous volatile periods lasted? What events triggered their end? How did the market behave after they ended? History doesn’t repeat exactly, but it often rhymes. Studying history gives you a broader perspective. 📈📚
- Research Industries and Companies You’re Interested In: Use this time to deeply understand a few industries you’re optimistic about and have long-term potential (New energy? AI? Consumer goods? Pharmaceuticals?). Research the leading companies within them, read financial reports, news, and analyze their business models. Understand the logical “company” behind the stock ticker. 🔍💡
- Learn New Knowledge or Strategies: For example, fundamental analysis, industry analysis frameworks, investment philosophies of renowned investors, etc. Investing is a lifelong learning process.
- Review Your Own Trading Records: See what mistakes you made during previous trends and volatile periods? What did you do right? Summarize your lessons learned, write a trading journal. 📝🤔
- [My Experience & Elaboration] Now I treat market volatility as my “investment hibernation” and “gym time.” Hibernation is for resting and recharging, and gym time is for getting stronger for the next competition. During this time, I’ve read many financial books, researched several new industries, and refined my own trading system again. I feel that the accumulation during this period is much more solid than what I learned blindly chasing moves in a bull market! Knowledge and skills are your most solid backing on your investment journey. Money lost can be earned back, but the skills you gain are yours forever! 🧠💪
- What can you do?
- Develop and Refine Your Trading Plan: Use this calm period to plan carefully:
- When a clear upward trend appears, what are your entry points, position sizing, take profit, and stop loss strategies?
- When a clear downward trend appears, what are your countermeasures (staying in cash, stop loss, inverse strategies?)?
- Most importantly: When the market enters a volatile period, what is your “no action plan” or “low action plan” ? What signals would make you willing to make a small пробная trades? What signals would make you retreat immediately?
- [My Experience & Elaboration] Trading with a plan is a million times better than trading based on gut feeling! Volatility is a great time to test and refine your plan. I even do simulated trading (backtesting) to see if my strategy would have worked during a past volatile period. There’s no perfect plan, only a plan that continuously adapts to the market!
- Pay Attention to Macroeconomics and Sentiment: Volatility often occurs when the market is waiting for significant macroeconomic data, policy signals, or digesting a sudden event. Pay attention to these information sources. While you shouldn’t try to predict the exact outcome, understanding the possible directions and risk points is always helpful. Also, sense the overall market sentiment (fear? greed? hesitation?). This can give you some reference points.
4. The Most Important Thing: Mindset Management! 🧘♀️💪
Investing is ultimately about managing human nature. Volatile markets particularly test your mindset. All the strategies mentioned above are useless without a steady mindset to execute them.
- Accept Uncertainty: The market is always full of uncertainty. Especially during volatility, nobody knows what will happen next! Accept this, and don’t try to control everything. The only thing you can control is your own behavior and emotions.
- Stay Away from Noise: During volatility, there’s the most amount of “insider tips” and “stock analyst predictions” flying around, and they’re often contradictory. Reading too much will only confuse you more. Reduce screen time, stay away from investment groups that send hundreds of messages a day, and give yourself a quiet environment to think.
- Find Healthy Ways to De-stress: Exercise, reading, chatting with friends, developing hobbies outside of investing… Make sure your life isn’t just about the gains and losses in your account. When you’re anxious about investing, have a place to release that stress instead of trading with emotions.
- Remember Your Long-Term Goals: If you’re primarily a long-term/value investor, short-term volatility fundamentally doesn’t affect the long-term development of companies. Ignore the short-term fluctuations and focus on the long view. If you’re a trend trader, remember that volatility is a rest period between trends, it’s accumulating energy, waiting for the next trend to emerge. All the preparation you’re doing now is so you can seize the opportunity when that moment arrives!
✨ My Personal Summary and Reflection ✨
Now, when I see the market entering volatility, I no longer feel the anxiety I used to. I tell myself: “Okay, the market is shifting gears and resting. This is not the time for me to accelerate and charge, but rather the time for me to slow down, check the ‘vehicle condition,’ refuel, and practice my ‘driving skills’.”
I view the volatility period as a “free training ground” given to me by the market. It tests my discipline, patience, and emotional control. Every time I successfully navigate through volatility, my investment skills and mindset improve a step further.
So, the “One-Move Instant Solve” for volatility isn’t about having a magical trick, but applying a philosophy centered on “defense” and “self-improvement” to deal with market “uncertainty.” When the direction is unclear, preserve your strength, improve yourself, and wait for that clear signal to fire! When the trend truly arrives, that’s when you go all in to fight for the gains you deserve!
Dear ones, volatility isn’t scary; what’s scary is losing direction and panicking during volatility. I hope my “One-Move Instant Solve” can bring you some inspiration and help! 💪
Remember: Endure the volatility, and you are a winner! Victory belongs to those who are prepared, patient, and wise!
Like 👍, save ⭐️, comment 📝, tell me what state you’re in during this volatile period? Or do you have any secrets for dealing with volatility? Let’s chat! 💕