Wednesday, 1 September 2010

The Times They Are A-Changin', Again or Still?

Bob Dylan, the philosopher of my generation, said it and it's as true now as it was then.

For a trader it's a matter of adapting to the changing conditions - changes that happen very often. Changes in volatility, changes in sentiment and so on. The particular changes we are going through started in 2007, and are unlikely to finish for quite a few more years. They are both a challenge and a huge opportunity.

I have heard people complaining that it's impossible to make money these days. For me, these last few years have been some of the best yet - and there have been some great years before. Finding these markets difficult means that a trader has not adapted to the environment. Just as Charles Darwin theorised that it is the survival of the fittest, so trading is even more evolutive.

The way I trade is not complicated. I just read the order flow and momentum, and put them into context. I have found that there is no reinventing required with this approach, as it's just tracking what "they" are doing and then going with that flow.

Today I started with looking to sell the Gap, but there was nothing to lean on. So my decision was easy - don't sell the gap (except for a quick scalp). I recognised the probability of a trend day when the Gap trade was not on and by the obvious strength after the numbers today. Watch the vid.

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