Selasa, 28 September 2021

Finding Wins In Cloudy Markets

Markets handed us another wild day today as we watch the battle between the industrials and tech play out. This rotation could be a sign of a bigger change afoot. It is weeks like this that can rattle even the best traders. When a well defined, long term trend struggles, it can often throw out some very misleading signs. 

Mixed markets, where the major indexes are heading in different directions can be a strong indication that things are shifting. As optimism in one sector fades, traders will look for opportunities to move their money into that can provide better, more predictable returns. 

Since traders are human you can occasionally see them second guess their choice. This will lock prices in a range until the markets can decide where they want to go next. 

Trying to interpret these unclear markets can lead to costly mistakes and these conditions make a great case for having proven, profitable, set of trading rules. 

Having a good system and driving to it is the equivalent of having good instruments to fly through a cloud. Richard Dennis famously proved that anyone can trade successfully with the right rules and discipline. He trained a group of inexperienced students to follow his trading rules and they raked in a fortune. Russell Sands was one of those students and his approach to using those rules is still working today. If you missed a chance to see the approach and how it works you can still access it here.


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