Since change is ubiquitous and permanent, we might as well become experts at adapting. We can get comfortable with change and look forward to its permutations and surprises. We can train ourselves to become adept at learning, unlearning, and relearning.
On the other hand, we don’t want to be whipsawed back and forth through too rapid repositioning. Nor do we want to keep switching methods and systems. We need to find the balance between being steady and too speedy a responder. We need to comprehend that markets, like the ocean, have waves, tides, and tsunamis. Each needs to be handled differently.
We want to make change an acceptable reality rather than a soap opera. We need to be flexible and versatile. In being flexible we observe reality clearly and adjust our actions. In being versatile we utilize our trained ability to perceive and react effectively.
Volatility in markets can be embraced as opportunity or feared as danger. That shot of adrenaline you feel as you trade can be exciting or terrifying depending on how you view the situation. Interpretation is at the essential core of our trading.
A good way to start each trading day is by asking some questions: Where are the opportunities today? Are there any impending risks to my positions? Where might the opportunities or risks develop?
In the midst of unfolding turmoil or stagnant stalling, we need to distinguish between the fundamental and technical changes that are structural and therefore important and possibly extensive, and those that are merely headlines passing through and therefore only interesting and probably short lived.
In any event, accept whatever is happening, utilize your methods and guidelines, take a deep breath, and do your best. Remember, as it has been said, “All you can do is all you can do, and all you can do is enough.”