Market Correction Mindset

In a market correction, your mind undergoes a correction too.

Corrections create uncertainty, and uncertainty causes stress. We are more likely to go a bit numb in the brain, not really sure what to do, so we often do nothing.

The first step to ending this type of mental correction is awareness. Acknowledge that you're probably are not thinking clearly (even if you think you are). Accept that you're probably more stressed than usual, especially if you've had losses. But lighten up on yourself, or things will only get worse.

Standing aside in a correction does not mean you should stand idle. Be patient, but remain active.  Taking purposeful action is a good diversion, if not a cure, for market-related stress. To get your mind back on track, do the same things you've always done, follow your routine, go over your plan.

Even if think there is no way in hell you're going to buy a stock right now, go through your routine anyway; it will give you a greater sense of control and can help ease tension.

Build a watchlist of potential “future” winners, so you're ready to act decisively when the correction ends. As you begin to see new setups forming, you'll begin to feel more confident, more focused, and more your trader-self.