nine
Senior member
- Messages
- 2,041
- Likes
- 509
OK. So its a crash. And there is probably going to be a recession. And maybe it will be a depression. And some think it could last 10 years or so.
That sounds like the sky is falling to me. :innocent:
But we're traders, right? Day traders mainly. So we just keep on keeping on, right?
Maybe not.
Recalling that you can never know what the market will do next, but all you have to know is what you will do next, I thought it would be worth discussing this little problem. What do you think could change in the markets and have you any suggestions for responding?
==========================================
Here is one thought.
"I trade with the trend but wait for price confirmation at support and resistance before entering a trade. I am concerned that after this bottom we will get a dramatic reduction in market participation and return to the daily ranges (and maybe lower liquidity) of 2002/3 or earlier. In this case waiting for price confirmation may give up too much of the move (I like markets with a daily range of 60-100 points to give me profitable price action).
In this case we may need to anticipate reversal at the mas/s&r more rather than wait for price confirmation. I am thinking about scaling in strategies in case my preferred markets contract significantly. I found this to be the case with N225 up until the recent increase in volatility and suspect it is true whenever daily ranges drop into the 30-40 point range."
.
That sounds like the sky is falling to me. :innocent:
But we're traders, right? Day traders mainly. So we just keep on keeping on, right?
Maybe not.
Recalling that you can never know what the market will do next, but all you have to know is what you will do next, I thought it would be worth discussing this little problem. What do you think could change in the markets and have you any suggestions for responding?
==========================================
Here is one thought.
"I trade with the trend but wait for price confirmation at support and resistance before entering a trade. I am concerned that after this bottom we will get a dramatic reduction in market participation and return to the daily ranges (and maybe lower liquidity) of 2002/3 or earlier. In this case waiting for price confirmation may give up too much of the move (I like markets with a daily range of 60-100 points to give me profitable price action).
In this case we may need to anticipate reversal at the mas/s&r more rather than wait for price confirmation. I am thinking about scaling in strategies in case my preferred markets contract significantly. I found this to be the case with N225 up until the recent increase in volatility and suspect it is true whenever daily ranges drop into the 30-40 point range."
.