Do you use different trading strategies?

[jbob]

Do you use different trading strategies?

This might appear to be a simple question, but I think it really gets to the heart and difficulty in trading. Its my impression that the most successful traders are individuals that are able to easily adjust and adapt to changing market conditions. This may obvious to many, but beginners always seem to be searching for the holy grail. Amateurs see the holy grail as some magic formula of when technicals indicators x, y, and z, line up, I will buy or sell. This is the opposite of using different stategies by always looking for the "one size fits all" approach to trading.

This approach fails to take under the consideration that the market is always changing and evolving, which is why beginners typically always fail. Sometimes it best to "buy low sell high", but other times its better to "buy high, sell higher".

My question is do people use different strategies for different market conditions (ie, range bound versus trending markets) or do they try and stick to one and sit out the other?

jbob

 

[efficiency]

Try this. You use one strategy to cover your overhead. Cash flow. You use another to take advantage of special situations as well as satisfying your craving for action. And you use one for capital formation (hopefully with a little tax deferral).

Each entail different time horizons. Accordingly different methodologies for both entry and exit, and.............different position sizing.