Guest Post: The Chameleon
Posted on March 9th, 2007
Written by Phileo
Posted in: N/A (old archives)
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Yesterday was the first day in over a week where I have felt good about my trading. It took a while to get out of my slump. I talked about my slump already on my own blog, so I won’t re-hash everything here.
Yes, the market environment has changed. Unfortunately, I think it took last week and the better part of this week for me to adjust to the changing environment. In my head, I thought I had made the adjustment, but it wasn’t until yesterday and today that my trading told me that I had made the adjustment.
The markets have demonstrated that it can change on a dime. What worked yesterday and/or last month no longer works, that much has been made painfully, yet crystal clear. The old tricks and techniques that I have used in the past are no longer as reliable, because the behaviour of the “elephants” have changed. As humans and as traders, I think we have built-in “mindset inertia”. We think it’s easy to change our mindset to adapt to the new market environment, but in reality, it actually takes some practice to do so. For me, it took the better part of a week.
So then in order to survive and thrive in this game, we must also change and adapt, and either quickly find out what works for this new environment, or stay on the sidelines until our old patterns start working again.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.