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When Markets Are Fast, Systems Must Be Calm

The rapid pace of markets can cause them to be chaotic during times of uncertainty. However, simply being quick will not mean that you have control. In fact, reactive systems tend to be much less effective when there are increased levels of pressure. Therefore, having calm systems in place is critical during volatile markets because calmness applies to technology, but also to people and process and calm execution environments experience fewer errors when the speed of the market increases. In addition, having clear internal systems will mitigate emotional reactions to chaos.

Additionally, calm execution environments will protect the quality of the trader’s decisions for an extended time period because fast-moving markets will quickly penalize any type of lack of stability. In contrast, controlled environments will demonstrate the continued ability to perform during high-stress events. 

Hence, the success of trading will be contingent upon how systems react to pressure and calmness is no longer simply an issue of passiveness; calmness is strategic.