Summarize and humanize this content to 2000 words in 6 paragraphs in English Listen and subscribe to Trader Talk on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Longtime stock traders know the high that comes with a continued return on their investments. But it’s also incredibly easy for even the most experienced investor to have a knee-jerk reaction to sudden downturns in the market. The possibility of a recession looming over the economy makes it even more likely that some investors will be tempted to bail the moment their investments begin to tank. However, according to Trader Talk host and veteran trader Kenny Polcari, letting these fears inform your trading will “destroy your portfolio.” “The markets don’t care about your feelings,” Polcari said on an episode of the Trader Talk podcast (see video above or listen below). “They don’t care if you’re afraid, hopeful, angry, or desperate. The market moves on fundamentals, on earnings data, on economic data, and reality.” “It does not move on your gut feelings,” he continued, warning investors that letting emotions make decisions is “a recipe for disaster.” This embedded content is not available in your region. It’s easy to see why even experienced traders may be tempted to bail out sooner rather than later. On Friday, JPMorgan became the first Wall Street bank to forecast a recession in 2025 while Yardeni Research raised its recession odds to 45%. “I see it all the time,” he said at the opening of Trader Talk. “Traders jump into the market, they’re fired up. They chase momentum, they feel euphoric, and then they’re up and panicked when they suddenly turn down. Here’s the truth: Trading on emotion is a guaranteed way to lose money all the time.” “If you want to succeed, separate emotion from the action,” he continued. “Make decisions based on strategy, discipline, and analysis, not impulse. Define your entry, set your stop loss, and know your exit before you even enter your buy button.” Read more: How to protect your money during economic turmoil, stock market volatility It can be difficult to continuously adjust your trading strategy based on analytics and data, especially as the US market has grown increasingly unpredictable. Kristina Hooper, the chief global market strategist at Invesco, admitted that the 2025 outlook released in November 2024 was “probably fairly conventional.” “Our expectation was that we would avoid a recession globally and that the US would [as well],” she said. “In fact, the US would have a very modest slowdown and then have a reacceleration in growth, … bringing along other Western developed nations.” Trader Daniel Kryger works on the floor of the New York Stock Exchange, Friday, April 4, 2025. (AP Photo/Richard Drew) · ASSOCIATED PRESS Though external factors like tariffs (and a potential trade war), China stimulus, a resurgence of inflation, and government spending cuts were considered, she admitted, “We never, when we laid this out, assumed we’d get all four swing factors come to fruition all the same time.” “But that … is, in fact, what has happened,” Hooper said. Even in the face of serious uncertainty, Polcari asserted that making educated decisions will be key to maintaining consistent and lucrative returns in the long run. “The reality is the market doesn’t care how you feel,” he said. “It rewards calm, disciplined traders who stick to the plan and punishes those who panic or chase euphoria. Bottom line: Check your emotions at the door or prepare to pay a big price. Trading as a business, not therapy. Keep your head, keep your discipline, and stay profitable.” Each week on Trader Talk, Wall Street veteran Kenny Polcari brings you expert advice and key market insights from the New York Stock Exchange. You can find more episodes on our video hub or watch on your preferred streaming service. Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more Read the latest financial and business news from Yahoo Finance
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