I read somewhere about a trader saying, he is bored in this market. Oh yeah, check it out, the market is NOT here for your entertainment! (Love P!NK hehehe). But I can understand what he is saying, there is so much volatility, investors don’t seem to have a strong conviction of their investments, buying up one day, selling the next, so there are either short ranges or wide gaps when least expected and too high-risk to trade! This with EU issues again rearing its ugly head just when we had a month of peace. So for everyone feeling lost or a bit confused – just think the market is doing a slow dance, taking steps forward and backward, plus those, oh, dramatic dips!
“Why is this happening?” I am sure, you wonder – my friends, it’s the nature of the market to move.
And there are many forces affecting the movement, there are negative and positive forces. So it is a constant struggle, with the stronger force set to win (guess who!) Let’s see, the debt problems are huge, it also affects a massive number of economies, therefore earnings of companies. To counter that, the governments implement measures to make the economies grow – we’ve seen rate cuts, bank lending ratios changed, some government spending. The companies that we invest in also do their part like cost-cutting (reducing plants, employees etc).
Now would you be able to guess which will be the stronger force? Neither can I. Governments are a strong force, don’t count them out, however, there are still many variables. It’s all still unfolding.
So the prudent thing to do, especially for newbies or those unable to hedge positions is just to invest in learning what this business is about. My book “High Heeled Traders” will enlighten you. For those who are already keen to trade, keep watching the market, keep close to feel the flow, wait for low risk trade and have very wide stops to accomodate the ups and downs.
I think we need to start appreciating it like a slow, sexy tango. So shall we dance?



