# Traders’ Guide to Financial Fitness in 2017 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-01-04 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Financial Fitness: 5 Tips for Traders in 2017 Meta Description: Learn how to diversify, monitor the economic calendar, prioritise risk management, discover volatility and be sceptical to navigate the financial storms ahead. URL: https://financedigest.com/traders-guide-to-financial-fitness-in-2017html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/image-1-1736844301551-compressed.jpg) **From the Desk of Evdokia Pitsillidou, Head of Risk Management at** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=0014azHph_RYAnq1S5pTj-lnRVLZMdopQg07qYys1y7Y8GCg7zgv-1dt3gpTnVgoUfB2F2G8nbnPsPOS-ITsA7wqzHWMBPbldt-Oh7Afnd1w9VonBFf9xuL7cO5zLPeQPE2IFCqeSdQel5llOgY4X4CFlXBOvcvYxGbycc9665fiMYu7W43G8UYAg==&c=e098oIfJ5wlW0f4yjoyUusg8jy1MiYzY3K4EYsflsIsqbYFMqGDo5w==&ch=etU_Fb8bGC6BCyv3uVtp8wDf0RatBROyhu8ZLBi3zx04RcV85itSEg==) **.** 2016 was a highly unpredictable year for the financial markets. Brexit, the election of Donald Trump and the resignation of Italian Prime Minister Matteo Renzi were just some of the major headlines that drove the markets this year. These and several other developments will be at the centre of the 2017 financial storm. Against this backdrop, we decided to give traders five tips to prioritise financial fitness in 2017. **Diversify** ![Evdokia Pitsillidou](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/evdokia-pitsillidou-1736844301355-compressed.jpg) Evdokia Pitsillidou Diversification is one of those recommendations we hear ad nauseam, mostly because it’s true and we rarely ever do it. Financial diversification – the process of allocating capital in a way that [reduces risk](https://www.financedigest.com/driving-returns-and-reducing-risk-with-data.html "Driving returns and reducing risk with data") exposure to one particular asset or market might be the key to financial fitness in 2017 and beyond. EasyMarkets has done just about everything to increase traders’ ability to diversify their investments. We have over 300 markets to choose from, so there’s no excuse to put all your eggs in one basket. Forex, commodities, stock indices and contracts for difference (CFDs) are just some of the markets you may use to achieve diversification. **Monitor the Economic Calendar** Today’s financial markets are highly [market driven](https://www.financedigest.com/demand-for-automotive-radiator-market-driven-by-shifting-consumer-perceptions-and-growing-awareness.html "Demand for Automotive Radiator Market Driven by Shifting Consumer Perceptions and Growing Awareness"). A high-profile news event, [economic data release or monetary policy](https://www.financedigest.com/asian-economic-powers-warn-of-risks-from-war-monetary-policy-normalisation.html "Asian economic powers warn of risks from war, monetary policy normalisation") decision may set the market ablaze. [Traders must be able to anticipate these moves in advance and prepare](https://www.financedigest.com/dollar-near-one-week-high-as-traders-prepare-for-powell-payrolls-tests.html "Dollar near one-week high as traders prepare for Powell, payrolls tests") accordingly. Luckily, this isn’t particularly difficult to do. Start off by glancing at the [economic calendar](http://r20.rs6.net/tn.jsp?f=0014azHph_RYAnq1S5pTj-lnRVLZMdopQg07qYys1y7Y8GCg7zgv-1dt6y-ZEu4zHM_s9PXw8HYsZneUCKDNKRbNf7nQo9GJCsg8TjdxIcfdEIgsSvc6rHXZlKXmDPELen3t06qv6KtQSVS4n7PKhKsPkbGSD2HLux3EOOI3h9B1rJHV2j8SOi2nD_zFn6r_znBhhyjisMAr7xAdeKdUtLmMg==&c=e098oIfJ5wlW0f4yjoyUusg8jy1MiYzY3K4EYsflsIsqbYFMqGDo5w==&ch=etU_Fb8bGC6BCyv3uVtp8wDf0RatBROyhu8ZLBi3zx04RcV85itSEg==) every day before you start trading. Monitor it carefully every [single day](https://www.financedigest.com/record-number-of-migrants-arrive-in-britain-by-boat-on-a-single-day.html "Record number of migrants arrive in Britain by boat on a single day") for potentially volatile events, then research those events to get a sense of what might transpire. **Prioritise Risk Management** In the world of trading, you must manage [risks to experience rewards](https://www.financedigest.com/the-risks-and-rewards-of-ai-in-banking-in-2022.html "The risks and rewards of AI in banking in 2022"). Risk management should be part of every fit trader’s regimen. This includes employing tools that may help you minimise loss and lock-in profit. Guaranteed stop loss, negative balance protection and take-profit [orders might therefore be part](https://www.financedigest.com/rheinmetall-wins-quarter-billion-euro-order-for-e-vehicle-parts.html "Rheinmetall wins quarter-billion euro order for e-vehicle parts") of your everyday vocabulary. EasyMarkets took risk management a step further in 2016 by introducing [dealCancellation](http://r20.rs6.net/tn.jsp?f=0014azHph_RYAnq1S5pTj-lnRVLZMdopQg07qYys1y7Y8GCg7zgv-1dtzzdRI-BZdzi7MKbylYXXsYYIDkEAn2b29NKLnLbUyA06IrtXkv1hwrji0d9A_5xaH45njR6ca6MTRJacBUo4I5M-YT7ER0qzTrovU-su5Aflj6iDHzYQDSARdkbg1V6QHx2SKPpOH6SLr-myEvroxz5KHFbSk50ryYqRcgmWzr_qci7pMDwEtw=&c=e098oIfJ5wlW0f4yjoyUusg8jy1MiYzY3K4EYsflsIsqbYFMqGDo5w==&ch=etU_Fb8bGC6BCyv3uVtp8wDf0RatBROyhu8ZLBi3zx04RcV85itSEg==), a tool that allows traders to cancel a losing position within 60 minutes and have any losses returned for a small fee. **Discovering Volatility** Volatility is the ugly step-sister of the trading world that many market participants simply don’t want to talk about. Unfortunately, ignoring volatility won’t make it go away. In the era of high-frequency trading, computer-based algorithms and [globalized markets](https://www.financedigest.com/concern-over-us-default-risk-grips-global-markets-as-talks-resume.html "Concern over US default risk grips global markets as talks resume"), volatility is here to stay. Rather than be afraid of it, learn to trade it. The CBOE VIX (a.k.a. the “fear index”) allows traders to trade volatility tied to the S&P 500 – [Wall Street’s foremost stock](https://www.financedigest.com/wall-street-pushes-stocks-oil-higher-on-promising-data.html "Wall Street pushes stocks, oil higher on promising data") index. Put simply, volatility usually moves in the opposite direction of the S&P 500,\[1\] giving you [ample opportunity](https://www.financedigest.com/c-arms-market-to-offer-ample-growth-opportunities-by-2027.html "C-arms Market to Offer Ample Growth Opportunities by 2027") to buy and sell volatility. EasyMarkets recently added the VXX Fear Index CFD to its MT4 platform. Give it a shot if you’re interested in trading volatile market-moving events. **Be Skeptical** The final piece of advice on the road to financial fitness is skepticism. Be sure to have lots of it as a trader, as your [day might be filled with sifting through fear](https://www.financedigest.com/omicron-found-in-europe-11-days-ago-jolts-markets-on-vaccine-fears.html "Omicron, found in Europe 11 days ago, jolts markets on vaccine fears") mongering, poor analysis and a heavily biased media. Skepticism has a lot of [unique advantages in the financial markets](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-surgical-chisels-market.html "Digitally projected revenue to be the unique selling point of Surgical Chisels Market"). Chiefly, it may help you avoid herd mentality, or the irrational euphoria that gets traders to do silly things just because others are also doing it. Herd mentality has [led to massive asset bubbles and more devastating market](https://www.financedigest.com/the-window-blinds-market-to-be-led-by-constructive-joint-ventures.html "The Window Blinds Market To Be Led By Constructive Joint Ventures") crashes. It is the bane of the financial [markets](https://www.financedigest.com/digital-marketing-for-finance-and-insurance-firms-is-changing-are-you-ready.html "Digital marketing for finance and insurance firms is changing — Are you ready?"), and should be avoided at all costs. Since there’s no single tool or strategy that will overcome it, your best defence might be a healthy dose of skepticism. A regimen centered on diversification, risk management, research and skepticism might help you become financially fit in 2017. Remember: trading is a marathon, not a race. Just as crash diets never work, the same applies to trading. Learn to [pace yourself and don’t be afraid to embrace new markets](https://www.financedigest.com/fine-chemicals-market-is-estimated-to-witness-an-average-pace-with-a-cagr-of-5-4-during-the-forecast-period-2022-2032.html "Fine Chemicals Market is estimated to witness an average pace with a CAGR of 5.4% during the forecast period 2022-2032") and strategies in 2017. This is especially true if what you’ve done before hasn’t brought you success. After all, the definition of insanity is doing the same thing over again and expecting different results. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---