February 17, 2013
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Trading Update: 2/11 – 2/15
Not much to report this week as I’m still on a holding pattern. This week saw the smallest range movement this year in the futures market I trade. As the range gets smaller, one’s trading techniques have to get more precise to get any sizable profit in price swings.
Last year got me used to larger swings with more volatility so this is good training for me to refine my trading focus to be able to handle these smaller fluctuations. It’s giving me the opportunity to fine tune all my methods.
Of course the biggest lesson these last few weeks have taught me is to, say it with me, “stay with the main trend and only switch to the “counter-trend” when it establishes itself as the new main trend and not a moment before.”
It’s interesting that up until now the market has pretty much all but ignored the coming sequester cuts to social services and military spending, a negative hit to the economy.That’s what the market does best – ignores a problem until it decides there’s a problem, at which point it overreacts.
Now we have only two weeks left so the countdown clock begins again with what looks like yet another game of brinksmanship with Dems vs Republicans. This will likely dominate much of the airspace this coming week if little progress is made with finding common ground.
