Too Much Choice Today!

Yesterday (21st January), some of the biggest stock markets in the world saw huge sums wiped off their value. The biggest single day losses since 9-11. The USA was closed for the day, so all eyes were on Wall Street today, to see how it would react when it reopened for business.

With so much expectation and pent-up energy, today was always going to be something special. So obviously I had to try and record some trades for you!

I’ve had quite a few emails recently, asking if I change my strategy for times like this, when talk of recession is rife. Why would I want to change it? A good strategy should cope with all market conditions. If you have to keep changing things to manage different markets, then you’re fighting a losing battle. It’s already enough work trying to figure out if the stock you’re watching is going to go up or down. Why complicate matters further by trying to second guess what strategy you’re going to choose as well?

No, a successful trading strategy is one that works in all conditions. It should make money when prices go up, and it should make money when they go down. If your strategy gives you respectable profits on quiet days, it will give you explosive profits on good days. Like today.

Fortunately for us, simple strategies, based on price (which always tells it like it is) work best. Learn to read price, and you’ll never have to think “Which strategy will I trade today?” – you’ll always trade the same. And you’ll always get good results.