WDGann, I completely agree. I mentioned that now is not the time to be complacent. I'm digging deep, trying to figure out why things are not working the way they once were, and how I can change that.
My read on the market has also been off these past few weeks. I had thought we would get a nice rally but thats not shaping up. I feel that in the next couple of years we are going to have a really slow market that just drifts which will make intraday trading very difficult. I believe market volatility, and thus opportunity, are largely created by hedge fund flows. If there ever is a large contraction in hedge fund money that would not bode well for traders.
Lucky? It's been a while since I heard myself as being lucky. So it's not that the market is harder but the system is starting to lag. For a system trader, it's something to be expected, as you all know. I was just thinking about it but I'm thinking that most of you have only traded stocks or stock indexes. I'm thinking most of you haven't traded corns, gold, lumber and other commodities. It's obvious I have a strong Gann Trader part in me. Gann's studies were mostly on Grain markets and DJIA I went through 40+ years of charts. I started my system programming career as a Turtle trader trying to trade 30+ different markets. I followed all of them for diversification reasons. Maybe that might be a reason I'm more vulnerable to changing market condition. I'm very passive about changing market and I don't mind changing my trading system if it doesn't work. Just like I didn't mind not trading a specific market if it's not working...
I feel system trading is the way to keep the long term perspective and the emotions in check. It is nearly impossible though, if the trader had no hand in the development of the system.
I am really thinking... Did you guys make your own system? Do you guys continue making systems, on the daily basis? ... or did you just stop once you made one system that worked at the time... It seems like most system traders in here who are whining only revisit system creation when bad times come.... Guys in Chuck Le Beau's Traders Club and OmegaList are constantly making systems... Are majority of ET system traders, plain old amateur system trader wannabes? Hrmm... just wondering...
Just part of the trading cycle... look to be consistently profitable, take smaller profits to put food on your table through more difficult trading conditions, and you will be ok in the long run...
It's not so much part of the trading cycle as it is the economic cycle. What industry is not hurting right now? Look at all the layoffs on Wall st. Traders are affected by the boom and bust cycle just like many other industries. In order to survive, you have to adapt just like larger companies. Cut your costs to the bone Find other methods that might work better in this environment Get a part time job on the weekend (if it gets that tough) At least as a trader, I don't have to worry about getting a pink slip in my pay envelope. Is it tougher trading lately? Sure, but what we are going through is no different than what many other Americans are going through...... And we will all get through it O.K.
For the past 3 years I made about 80% of my profits in only 3 months. Once my system starts to deteriorate I get back to the grind of looking for something new.
I agree, the best thing to do is change your approach. This is my 6th method in less than 3 years. I find combining a longer term and short term method is a good balance. Today I missed the boat completely. That is why I am posting because I have the time