A majority of my trading is trend trading, also known as swing trading. Trend trading trades typically have a life of a few days to a few weeks. When the overall markets are moving in one direction, there are many opportunities to find trades.
I am sure everyone remembers the market dive in 2008. It was easy to find many short trades during that time. I know it is not a positive environment for
the overall economy, however, as a trend trader, I like the down markets. Price moves faster in down markets and provides more opportunities for trades.
Also, trades tend to hit the target quicker. Below is a chart of SPX in 2008.
Then the overall markets had a good run from 2009 until March of 2015. During this period, there were many opportunities for long trades. See the chart of SPX in 2013 as an example of the uptrend in that time.
Since March of 2015, the overall markets have been sideways and choppy. Today SPX is trading at the same level as in March of 2015. Below is a chart of SPX from March 2015 to the present.
When the overall markets are trading sideways it is more difficult to trend trade. There are less setups and you have to be more selective in the trades you take. It is necessary to find individual symbols that are still trending in one direction, symbols that are not reacting to the movement of the overall markets. Below is a chart of NVIDIA (NVDA), showing the past twelve months. You will notice that the pattern is more like SPX in 2013 and not trading sideways like the current overall markets.
This Thursday I am hosting a free webinar on trend trading. When trend trading in a sideways market you need to have a system, a plan, be disciplined, have
patience, choose your trades wisely and follow your rules. I will be discussing this and more. Here is the link to register for the free webinar this
Thursday at 7pm CDT:
CLICK HERE to register
I hope this was helpful and looking forward to seeing you on the webinar.
Simpler is Better,