As the market approaches its all-time high, the general public hears a steady stream of doomsday predictions, and colleagues say this is the beginning of a new bull market. You can now go to a bookstore and find many books that predict the end of the fractional banking system, and some, as we know, will go to predict the end of modern civilization. An announcement of a new bull market can be found in many print magazines and on many popular websites. My attitude to the situation is this: Things are never as good as they seem, and things are never as bad as people think.
The truth of the matter lies between these two extremes.
Short-term traders in which the market goes, at least from a trading point of view, give very little results. Of course, the direction and speed of any market movement can have a profound effect on our personal lives. Although let’s trade for now.
As the market approaches all-time highs and P / E ratios are on the high side, I think a cautious trader will be cautious when trading at all-time highs. Trade, which has reached the highest level of all time, is a difficult task. The logical assumption would be to trade on the short side, right? No.
As a trader, we are chart traders and a sensitive approach to this dangerous market will, as always, be to trade what you see on the chart. There can be a cautious increase in both long and short prices, which should be a reminder that strong trade forces on both sides are making plans for themselves for the final market outcome. Again, we are chart traders and are still trying to understand what the chart shows and the context of the market.
So do you need to change your trading style with all the hoops we hear?
In my opinion, the right course is to continue trading as you did on another day; but behind my mind would be the idea that these were times of high emotion and that they would trade on the conservative side of things. Stick to your trading plan and remember that unusual movements, both inverted and downward, are already part of the trading equation.
As you read, it continues when everyone is convinced that the market should fall. Sometimes it explodes on the long side, it’s called climbing the wall of anxiety, and the market can climb the wall of anxiety longer than your future account can hold. On the other hand, as declining traders begin to investigate any weakness in the market, there are strong opportunities for the spikes to go down. Your job is to stay on course and know that these are high-risk times and make an effort to avoid high-risk futures trading.