You don’t have to be a trader on the world’s markets to experience the financial roller coaster, says mathematician Lambros Klouvidakis.
“The world has struggled in recent years to absorb the many stresses and negative influences on global markets and everyone’s affected. Look at the senior citizens who lost as much as 40 percent of their retirement investments!” he says. “At one point during the crisis, the Dow Jones Industrial lost 50 percent of its value in less than a week; unemployment shop up more than 5 percentage points and consumer spending, at its worst, dropped by 50 percent.”
Traders, however, gain and lose on a regular basis, and we can learn a lot from their experience, Klouvidakis says.
The Canadian market analyst has spent more than 12 years, producing more than 9,000 pages of notes, developing a formula called Semathy http://www.semathy.com that accurately calculates forthcoming exchange rates.
Klouvidakis offers tips for traders and anyone else experiencing major shifts in their finances:
• Set the right tone immediately. If you’ve lost a chunk of money and your lifestyle is already compromised, understand that you can get it back. Rather than wasting energy trying to blame someone or something, focus your efforts on problem-solving. Not only does this mindset put time to good use, it also diverts you from negative and painful feelings. On the flip side, if you have recently come into a large amount of money, smart investments and shrewd spending are equally important.
• Take stock of your human assets. Remember, you have important assets that don’t show up on the net worth statement. Education, experience, skills and knowledge are hard to put a dollar value on, but don’t overlook them as a resource. Talk to other traders about ways to use strengths and skills during this time of income change and in the future.
• Share the burden & ask for advice. During times of stress, the support of friends and acquaintances is critical. New traders, for example, have difficulty revealing their vulnerability and inexperience to more seasoned traders, but when they do, they open the door to receiving excellent advice. The same is true for those who are not marketplace professionals but need encouragement.
• Accept change and uncertainty (be flexible). Income changes require that we prepare for a journey of uncertainty. We often cling to the very things that hold us back. Traders who adjust well to change know when to hold on to a position and when to let go. Many of us grew up believing strength meant holding on, when it often takes more strength to let go and move on.
• Don’t forget your family. Trading, looking for a job or studying for a new career can be consuming, but even when things have gone bad — especially when things have gone bad — stay involved with your family and create stability at home. What’s good for the family is also good for you. In difficult times, new traders tend to take others for granted and forget to provide the attention they need and deserve. If necessary, make a strong conscious effort to pull together with family and work through tough times.
Reprinted with permission from RISMedia. ©2013. All rights reserved.