Finding a market to suite your strategy

Discussion in 'Trading' started by IndexSwing, Jun 13, 2008.

  1. It has occurred to me for a while that trend followers can do well in smooth trending markets, but they will have a tough time in choppy range bound markets. Counter trend faders don't do well in smooth trending markets but can do well in choppy range bound markets. So, from a traders perspective the best course of action might be to decide in which of these two camps you feel most comfortable and then seek the best market to employ your strategy. I feel that I can do best trend following and I want to hold positions for hours rather than days, so I want to trade markets that display smooth interday trends. So, far I think that corn and soybeans may be the best markets in which to employ my strategy.
     
  2. Absolutely agree but you have to realize that markets change behavior fairly regularly. You may find yourself having a good time trading a trending market only to have it switch on you to a choppy market. To really make it as a trader you have to be able to either trade both markets or, have the ability to recognize both markets and avoid one or the other.
     
  3. The word is "suit" NOT "suite".
    :D
     
  4. I realized that after I posted. Thank you for being suite about it. Oh, sorry I meant to say sweet.