Whenever the market moves, does your heart sink (disgusted) or rise (excited)? Or does it really depend on your positions?
I trade options pretty much delta neutral, without regard to direction, and follow a system that I know makes money in the long run regardless, so it's really just a job for me. When the market really spikes either way, I typically lose a bit, but it comes back before too long. I know that I will have both ups and downs, and eventually the "ups" will prevail. The more bored I am, the better, and I really don't get too excited any more by big moves. Jessie
Not exactly the same with just equities, but you can certainly spread weaker stocks against stronger to reduce directional exposure significantly. A lot of equity traders made a lot of money this year in the retail sector, for example, by shorting Home Depot and going long Lowe's. If the group moves up or down dramatically (either with the market as a whole or simply as a market segment), your losses will be mitigated by one side or the other of the position, and you may even show a profit, and if you are right about the relative strength of each, you will make money on the spread even in a relatively flat market. There are lots of strategies to reduce both delta and beta using just stocks, and lots more combining stock & option positions, for those not comfortable as pure option traders. Jessie