Wrong again!

So as soon as I start putting up blog posts about potential shorting opportunities and the factors you need to consider when shorting, the market does another about turn and moves back up. I'm wrong again!

Rage against the machine(s)

With the advent of computers, then electronic trading, and subsequently the internet and social media, some people would have you believe that the act of trading has become much more difficult than in the days of people like Bernard Baruch, Jesse Livermore and the like.

There are hedge funds out there who literally use rocket scientists to create sophisticated alogrithms, all dedicated to trying to find an edge. The trend (excuse the pun) seems to be towards more and more complicated systems.

Where will this all end?

If it works - do it!

If you have found a trading methodology that generates positive returns, suits your personality and risk profile, then you have found your own trading holy grail.

When market conditions change

There are four basic market states - trending or non-trending, stable or volatile. Different trading methodologies are designed to profit from whatever combination of market conditions are out there. Trend followers find stable trending conditions the most favourable. Shorter term traders, swing traders or day traders prefer non-trending, volatile conditions.