I think as long as you have an exit strategy and have given this outcome a reasonable probability of occurance (meaning that you won't be shocked into paralysis) then I think you're going to be ok. Althought the market as a whole may be experiencing low volatility as per the VIX or VXN there are many pockets of high/med volatility out there still. So it really is in the eye of the beholder.
Worst market ever?
- Thread starter daniel_m
- Start date
I am sure you can make a living no matter what the market does with enough capital and experience. But I am talking about making it big here, every trader wants to be a big player one day. When you see the Market Wizards for ex. most of them traded during the megabull market started in the 80's or the bullmarket of the 70's in commodities. I also think the best traders (at least early in their career )are specialized in a few markets they know very well not jack of all trades looking for trends across sectors and markets.
I sure am having no trouble in this market. My trading account is up way way more this year (130%) than it was at this time last year. I think that most people are looking for momentum and volatility that isn't there. If you trade countertrend, you'll do much better. When markets don't go anywhere, you buy the dips, and short the moves up. You'll do fine, cause the market goes no where and reverts to the mean.
Personally, I love this kind of market. The reason I like it is because fund managers are scrambling to shift money from one stock to the other. It reminds me of a few other markets I traded in the past, be it 1991, 1994 or 1997 and even some of 1998 before the Internuts took off.
I have a great edge in this market. I have years of experience using The Usual Suspects, Knock Down, Power Trader and New Kid on the Block Scans. And guess what? I find the stocks that get the interest from both buyers and sellers everyday. And I like it the most when there is no Index sponsorship for that particular stock, so it completely disconnects itself from the market and move on its own. In other words, futures tick up - it doesn't matter. Futures tick down - it doesn't matter. It ignores the market.
Moreover, Sky Scraper on Nasdaq stocks has been GREAT. Some Bottom-Fisher on NYSE and Nasdaq as well had good success in channel trading.
Bottom Line: There are plenty of opportunities every trading day. It is all about finding them, being selective and managing the trades properly.
The time of year should also be considered if you plan to carry overnight. Earnings season and confession season have large impact on gaps. So you must be extra careful in January, April, July and October as well as the last two weeks of the month prior (confession period).
This market requires a lot more patience and discipline. I also think that experience is paying off great dividends right now, especially for those who traded well in the early 90's.
I have a great edge in this market. I have years of experience using The Usual Suspects, Knock Down, Power Trader and New Kid on the Block Scans. And guess what? I find the stocks that get the interest from both buyers and sellers everyday. And I like it the most when there is no Index sponsorship for that particular stock, so it completely disconnects itself from the market and move on its own. In other words, futures tick up - it doesn't matter. Futures tick down - it doesn't matter. It ignores the market.
Moreover, Sky Scraper on Nasdaq stocks has been GREAT. Some Bottom-Fisher on NYSE and Nasdaq as well had good success in channel trading.
Bottom Line: There are plenty of opportunities every trading day. It is all about finding them, being selective and managing the trades properly.
The time of year should also be considered if you plan to carry overnight. Earnings season and confession season have large impact on gaps. So you must be extra careful in January, April, July and October as well as the last two weeks of the month prior (confession period).
This market requires a lot more patience and discipline. I also think that experience is paying off great dividends right now, especially for those who traded well in the early 90's.
I think this is a tough market for most traders because of the lack of volatility and sustained momentum. It reminds me of the period in '92-'94. I think you need to remember three things to make money: 1. Play the range, not the trend; 2. Keep your powder dry, don't lose your trading stake getting whipsawed every day, and 3. There are other markets to trade, such as the bonds, energies, currencies, etc. Some of them have had huge moves.