What Is Your Trading Plan?
What Is Your Trading Plan?November 5, 2020
The post-election rally rolls on.
Who knew what would be the market reaction to a still undecided election? This ongoing rally is one of those times when amazing moves in the market happen when no one expects what is happening.
What is your trading plan as the political, economic, market scene unfolds?
Simpler’s traders are leaning on caution as any wild developments Friday or through the weekend could change a market that has seen incredible swings this year.
This is not a normal week — presidential elections happen once every four years — so referencing reliable stats is a limited proposition. Considering how crazy this year has been and how strong the rally is so far this week, this may be an opportune time to take the gains.
No need to test the market, especially if you have a pre-established trading plan designed to avoid an uncertain market.
An established trading plan that follows proven systems is what we believe generates income in the markets. The plan should be designed to work for you versus subjecting your trading to the emotional attachments or reactions that can prompt unwarranted moves down the wrong path.
And, as we’ve seen, politics and news spur emotionally-charged actions.
We’ll avoid that situation as much as possible because we’re here to make money and support each other doing the same.
We Saw: A market rally holding its strength —
- Market responding to possible split government
- Nasdaq outperforming other indexes
- Still no presidential decision
We’re Watching: For cautious gains in a strong rally —
- Sticking to a pre-set trading plan
- To keep emotions in check – no FOMO
- Not giving up gains on a Friday