Quarterly Outlook
Upending the global order at blinding speed
John J. Hardy
Global Head of Macro Strategy
Saxo Group
Whether you’re building a long-term portfolio, trading actively, or simply trying to stay composed during market volatility, your mindset plays a more significant role than you might realise. Investing isn’t purely a numbers game — it’s also an emotional experience. Our feelings, habits, and personality traits often influence our financial choices far more than we tend to acknowledge.
Perhaps you’ve felt anxious during a market downturn, jumped into a trade based on a hunch, or held on to a declining investment in the hope it would rebound. These are not just errors in judgement — they’re emotional responses. Learning to recognise and manage your emotional mindset is one of the most valuable skills you can develop as an investor.
This guide offers a step-by-step approach to help you build self-awareness and cultivate a calmer, more confident investing style over time.
Next time you log into your investment account, pause and take note of how you feel. Are you focused and clear-headed, or anxious and impulsive? Do you immediately check a favourite share or feel drawn to the latest trend? These responses offer important clues about your emotional patterns.
Emotions such as fear, excitement, regret, and overconfidence often play a subtle but powerful role in our behaviour. The more you begin to recognise when these feelings surface, the more control you gain over how you respond.
The goal isn’t to eliminate emotion — it’s to notice when it begins to steer your decisions. That awareness is the first step towards stronger, more stable investing habits.
Once you begin to observe your emotional responses, the next step is to create a framework that helps you stay grounded. A clear investment plan acts as your anchor — a guide to keep you focused when markets are rising or falling.
Your plan doesn’t need to be complex, but it should cover the basics: your investment goals, risk tolerance, criteria for entering or exiting positions, and how much loss you’re prepared to accept. Simple routines — such as reviewing your objectives before making a decision, or taking a few deep breaths before logging in — can also help maintain emotional balance.
Having a plan in place encourages consistency and reduces the likelihood of making impulsive choices based on short-term emotions.
As you gain more control over your emotional responses, you’ll have space to cultivate the qualities that support thoughtful decision-making. Traits like patience become more natural when you focus on long-term progress rather than daily price movements. Flexibility becomes an asset — not a liability — when you see it as adjusting your strategy, not abandoning it.
With time, you’ll start to trust your process. You’ll find that you can sit with market uncertainty without rushing into action, make adjustments with confidence, and stay committed to your strategy even when external noise is high.
These internal strengths are often what separate short-term reactions from long-term success.
One of the most underappreciated investing skills is knowing when to pause. After a loss, the temptation to recover quickly with another trade can be strong — but this often leads to riskier, less considered decisions. Instead, take a moment. Reflect on what went wrong, learn from the experience, and give yourself the space to regroup.
The same advice applies after a run of successful trades. Winning streaks can feel energising — but they can also lead to overconfidence. Take a step back and ask: am I still following my plan, or am I starting to believe I can’t go wrong?
In both scenarios, a short pause can bring clarity and prevent emotion from taking over.
One of the most effective tools for developing emotional awareness is journaling. After each investment decision, jot down what you were feeling, what actions you took, and what the outcome was. Over time, patterns begin to emerge.
You may discover that certain moods result in better outcomes, or that your best decisions come after a walk, a break from the news, or a quiet moment of reflection. These insights can help you create a more supportive environment for your decision-making process.
Small, consistent reflections can lead to meaningful improvements in both your mindset and your investment results.
Recognising your emotional mindset as an investor isn’t about being free of emotion — it’s about understanding how emotion influences your choices, and learning to manage it with greater clarity and control.
With a bit of structure, ongoing reflection, and a willingness to pause when needed, you can turn emotional tendencies into long-term strengths. The more self-aware you become, the more confident and resilient your investing journey will feel.
Because ultimately, successful investing isn’t just about timing the market — it’s about learning to trust yourself, even when the market is uncertain.
How Dollar Cost Averaging (DCA) can help during market volatility
How to maximise your compounding returns: A comprehensive guide
Growth investing: What it is and how to build a high-growth portfolio