If you’re freaking out at volatility, you’re not suited for speculation
If Volatility Scares You, You Have No Right to Touch Gold
But if you touch it while being scared, you’re the one who will get blown away.
There is a phrase spoken by anyone who starts trading gold: “The volatility is too high, it’s scary.” The unrealized losses ballooning all at once, being driven crazy by unexpected price moves, it’s bad for the heart—indeed that feeling is not wrong.
But I’ll say it plainly.If you continue to trade while feeling afraid, you have no qualification to handle gold.Trading while carrying fear distorts your judgments. You cut losses too early, or, conversely, you can’t close positions due to fear, or you stay in a position and can’t sleep. Fear is an enemy to trading.
Do not misunderstand. I am not saying, “don’t fear, be brave and bet big.” On the contrary, it’s the other way around.Feeling fear is a sign that your approach to risk is wrong—that’s what it means.