Despite the general indices giving a long signal earlier this week, we are cuurently experiencing fluctuations as a result of further developments with the Eurozone, as well as the latest Federal Reserve announcements. Again, this is one reason why I rarely trade indices and currencies, which are prone to whipsawing in environments like this and, in my own experience, do not trend as well as individual equities.
As I have mentioned before, I use the indices solely as a guide as to which direction I should be looking for the majority of any new positions, BUT I always try and have one or two trades in the opposite direction.
One trader in my mentoring programme, who I know has profited nicely during the recent downtrend, still has some short positions open - the charts show that current price is still below the stops as indicated by the system, and therefore he has done nothing on those trades apart from adjust his trailing stop as required. He has therefore not 'cut short' his profits - he is letting them run, which is entirely the correct thing to do. It is also why, even when there is a new trend signalled in the general markets, there is no need to charge into lots of new positions - you can play yourself in, limiting yourself if need to be to one or two new positions per day, in case the new market trend fails.