The International Monetary Fund has cut its 2025 growth forecast for Africa to 3.9%, down from 4.2% in October, citing a series of economic shocks – including the disruptive impact of Trump’s tariff agenda.
Markets have been rattled since the US president imposed tariffs on 57 countries, only to backtrack days later with a surprise 90-day pause.
The whiplash has left investors on edge, driving an 80% spike in searches for “protect my investment”.
In response to this uncertainty, brokerage and forex experts BrokerChooser have revealed their top tips to help investors steady the ship and safeguard their portfolios during these unpredictable times.
We’re trading experts: Here’s what investors should do *now* amid Trump’s tariff turbulence
1. Stick to risk management discipline – say no to emotionally-led moves
Emotions are powerful market forces. Fear, greed, and overconfidence can derail even the most carefully laid strategies. Enter every position with a clear risk threshold and a planned exit strategy – don’t deviate from that based on headlines or social media noise. Avoid revenge trading after a loss or overreacting to sudden swings. In volatile markets, those who stay calm and consistent are the ones who come out ahead.
“Volatility is now the new normal, with geopolitics, inflation, and shifting monetary policy making sharp market swings a permanent feature, not a temporary shock. However, periods of extreme volatility are what separate professionals from beginners. This is a time for skill, prudence, and discipline, not panic.” — Krisztián Gátonyi from brokerage and forex experts BrokerChooser
Remember that volatility is a double-edged sword. Yes, it can open the door to outsized gains – but it can also wipe out positions in minutes if risk isn’t carefully managed. Volatility can lead to rapid losses, so make sure your broker offers negative balance protection (NBP) to ensure you don’t lose more than your initial deposit.
The key is to approach volatile markets with precision – use smaller position sizes and dial back leverage to avoid forced liquidation.
In uncertain times, your goal isn’t just to chase upside – it’s to stay in control long enough to seize it when it comes.
2. Look beyond the panic – spot and exploit overreactions
In volatile markets, asset prices can often overshoot their fundamentals due to market rumours or news events, creating opportunities for investors who are quick to spot these discrepancies.
For example, if a well-known stock like Apple (AAPL) drops sharply after a minor earnings miss or negative headline, yet its long-term outlook remains solid, that dip could be an opportunity to buy at a discount. When the panic fades and rationality returns, such stocks often rebound toward their intrinsic value.
These mispricings can be rewarding if you’re able to separate short-term noise from genuine shifts in fundamentals. Not every dip deserves a buy, and not every surge is a reason to sell.
Acting on them requires patience, a deep understanding of the business, and careful risk controls. Reacting without research turns opportunity into risk.
3. Diversify smarter and monitor correlations
Diversification isn’t just about holding a wide range of stocks – it’s about holding assets that behave differently. In markets rattled by trade tensions or tariff shocks, traditional relationships between asset classes can break down. What once served as a hedge might suddenly move in the same direction as your other holdings, increasing the risk of correlated losses across your portfolio.
In addition, avoid illiquid assets – thinly traded stocks, exotic FX pairs, and niche ETFs can be prone to extreme moves during turbulent times. That’s why it’s critical to diversify across uncorrelated assets such as commodities, currencies, real estate, and alternatives like gold or crypto, depending on your risk appetite.
These assets can act as shock absorbers when equities falter. Regularly review how they move in relation to one another and adjust your mix accordingly.
Effective diversification is not a ‘set and forget’ approach – it requires active oversight to ensure your portfolio remains resilient throughout uncertainty.
Krisztián Gátonyi, from brokerage and forex experts BrokerChooser, commented on the current trading landscape and the impact of Trump’s tariffs:
“We’re seeing a textbook case of event-driven volatility, and Trump’s tariff whiplash has only intensified it. The uncertainty from conflicting signals – imposing tariffs one day, pausing them the next – has created a hyper-reactive market where sentiment swings rapidly. This kind of unpredictability makes it especially important for investors to remain disciplined and avoid emotionally charged decisions.
Volatility can be a friend or foe – it all comes down to how well you prepare. The global ripple effects of US trade policy mean certain sectors may face prolonged headwinds, while others could become defensive havens. Monitor cross-asset correlation and stress-test your portfolio across different scenarios. It’s not about reacting to every headline – it’s about building a resilient strategy that can withstand uncertainty.”
4. Stay long-term focused – but steer with intention
Market turmoil is a chance to zoom out and reassess your broader investment objectives. If current chaos isn’t likely to impact your portfolio over the next six to twelve months, stick to your long-term strategy. Use this dislocation as an opportunity to reassess holdings and look for chances to buy high-quality assets at more favourable prices.
However, staying long-term focused doesn’t mean staying static. Tariff-driven volatility can dramatically shift sector dynamics. Industries like manufacturing, tech, and agriculture may face sharp swings depending on tariff scope and potential retaliatory measures. Shifting some weight into defensive areas like healthcare, utilities, dividend-paying stocks can help protect capital without stalling growth.
5. Fight the gap – prepare for sudden market moves
Sudden jumps or dips in asset prices between trading sessions – sometimes as much as 20% to 30% – are especially common during periods of extreme uncertainty.
These ‘gaps’ pose serious risks, particularly when markets are driven by unpredictable policy announcements. This is where risk controls like Guaranteed Stop-Loss Orders (GSLOs) become essential to protect positions from slippage during these jumps.
They ensure that your trades close at predetermined levels, even if the market gaps past them. While they carry a small premium, the protection they offer in chaotic conditions can far outweigh the cost.
If you’re trading near major announcements – such as a Trump speech, G7 summit, or tariff deadline – consider scaling back your position size or reducing leverage. In volatile periods, adjusting position size according to volatility allows for smaller positions when market swings are large and larger positions when volatility is low.
6. Stay informed – without getting lost in the noise
In today’s hyperconnected world, access to information is critical – but it can quickly become overwhelming. Endless headlines and conflicting opinions can trigger knee-jerk decisions. Instead of reacting to every alert, focus on quality over quantity.
Prioritise credible sources, such as central bank updates, economic indicators, and official trade policy announcements.
AI-driven noise, such as AI-based trading strategies, amplifies volatility and triggers flash events, especially in short-term trades. Markets can swing wildly on speculation alone, even before policies are confirmed. Stay focused on facts and use information strategically. Stress-test your portfolio for potential scenarios such as new tariffs, retaliatory actions, or supply chain disruptions. This helps you anticipate how different outcomes might impact your holdings and positions you to respond thoughtfully, not emotionally.
