Adapting Trading Strategies to the Market

adapting trading strategies

Sometimes we feel adapt trading strategies to the market is the right play. I can tell you from experience it’s not the right trade to buy weak stocks and that’s the majority of the board that we have today. (9-2-15)

Let’s set the tone for everybody as a long-term trading lesson for lack of a better away putting it.

Could Apple rally 3 or 4 dollars today Netflix, Tesla, Facebook? Absolutely, could you hop on board? Yes but here’s what going to happen…

If you don’t you’re going to say why didn’t I? — if you do and the stock rolls over you’re going to say that was a stupid trade I know I’ve had that conversation hundred times with myself.

Essentially what it comes down to is you if you want to be a buyer on a day of selling to give the lesson context on what we expect to see today, that means that you are choosing a different bias than the long-term trend. You are trading against the institutions and the current tape.

That means that you are NOT trading change from the open, that means you are not trading change from yesterday’s close and probably know is the current hour up or down so essentially what you’re saying is I’m trading for what is going on right now which means you must adjust your strategy that identifies an edge.

Effects of adapting trading strategies to the current day

You must adjust your trade management and your trade expectations if you choose to trade against a longer-term bias you must admit there is less price history to support your idea.

I don’t recommend doing it but we have all been there. We get on edge when there is less to trade. The real problem is we didn’t earn what we should have, when the market was obvious.

So we compensate by over trading, taking mediocre trades and sitting in losers too long. This is a recipe for draining your account.

Download today’s podcast and see how we recommend you resolve this nagging issue.

Pete Renzulli

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