What if the market just crawls down???

Discussion in 'Trading' started by spinn, Oct 27, 2006.

  1. spinn

    spinn

    One of the things I look at before entering a trade is how the market behaved on the cyle previous to the one I am considering entering.

    If it just bladed up or down, I am aware that the next move may blade in the opposite direction.

    Since the markets have generally crawled up for the past 5 years, wouldnt it be reasonable to expect it to crawl down?

    Everyone who is expecting a crash may instead see a long slow grind down to some as yet undetermined support.

    It would sure be easier if market dropped 10% in one week, if you are short at least.

    But who is to say the dow or whatever market wont just lose a percent or two a month for the next year or two?
     
  2. it's a fool's gambit to try to predict the markets.

    Develop trading methodologies that

    - act and re-act to market changes; don't try to predict them

    - are simplistic and tolerable to your risk levels and trading style/abilities

    It's that simple........then you don't care whether the markets go up, down, or all around.