The end of Q3 marks and up day (at least around 3:30).
My blogging and trading is going on the back burner for the next couple of months.
Non directional trade starts with the presumption that calculated Standard Deviation is obeyed by the markets. Of course we allow for bigger moves, in one or the other direction. Currently we see big moves in three direction up, down and back up again. Not very helpful of a non directional trader.
Part of a traders skill is to recognize when his trade style is applicable and in which situation it is not. For me it would be pitfall to toss non-directional trading to the sidelines and to trade more directional - as said earlier - which direction? I am better off to sidestep this ordeal and come back with proven methods when the environment is more supportive.
I will use the VIX as an indicator for market conditions, in 2002 it took a couple of month for the waves to settle. So maybe I am back for December - the Vix will tell.
Thank you for all your support over the last months.
Hello,
I would appreciate if you could talk a little about your trading plan, now that you are off trading for a while. What to trade, when, how, diversification, risk control, psicology, portfolio mix (long term/short term), i think the special market we are in is an excellent tool to highlight our trading shortfall/problems and therefore test our trading plan and convictions to see if they hold up well
Posted by: Trader M | October 01, 2008 at 06:12 AM