Current market volatility and staying the course

In the last couple of weeks we have seen an ever-increasing level of volatility within the context of a sharp drop in price in the major market averages.

We have also started to see intervention in the markets by governments and regulators - additional liquidity being provided and interest rate cuts, as well as market trading halts (up and down) being triggered and the introduction of short selling bans on certain stocks.

Letting the downtrends run

Having more losing trades than winning trades is to be expected as part of a trend following process. 

Part of the joy of trend following is that you never know when you will end up in a profitable trade, and once we do, we have no idea how long the trend will last for, and also how far price will move in our favour.

Time for a rant

It's been a while since I had a rant, but I'm always astonished when I come across some articles like I've read over the last few days relating to the market drop since the turn of the year.

You get the usual comments from people who have lost money - ban short selling, ban hedge funds, the brokers are working in cahoots with the hedge funds, the market's rigged etc...