Time For Break In Wild Market?
The market environment can change dramatically in a short time and traders should consider adapting trading strategies to get through the final days of a wild year.
What worked for many traders just a few weeks or months ago may prove more risky into the New Year.
Many of Simpler’s traders already hit their annual goals for this year. Still, they understand how continued uncertainty and a wildly cycling market present greater risk to traders.
Much of this year hasn’t been a time for “Oh, I’m going to make some huge bets here.” One of the key trading tenets at Simpler is that we’re not in this game for the euphoria of winning off big plays, we trade every day to gain profits.
If this was bodysurfing, we would ride a series of safe, 3-feet waves into shore and avoid any 90-feet, “killer” waves that bring everything crashing down.
The big elephant in the room for traders is the nervousness and uncertainty of the world economy, political tensions, and a New Year that hasn’t established any clear direction.
Many unknowns are still out there — economic stimulus impact, Covid-19 vaccines and variants, and more politics — that even though there will be trading opportunities some of Simpler’s traders tend to slow down, taking a breather and watching closely how the market reacts.
Another wild, often bewildering, year has created opportunities for profits and traders want to keep what they have gained.
With all the uncertainty, a trading plan the next few weeks might be to sit back and enjoy a little J.O.M.O. — Joy Of Missing Out. Be open to whatever the market may be offering, but no need to take on any risky challenges.