The current market conditions are tough. I don’t know how other swing traders are dealing with them, but it is quite difficult for me, that’s for sure. So, I’ve decided strongly focus on preserving capital. In September I’ve had insanely large number of transactions: 71! This means that I don’t want to take any risks at this point. If I sense that the market doesn’t move in my direction, I simply close the deal close to zero. I’m not going to sit and wait for the market to go in my direction. The market has clearly shown its long-term ability to ignore economic data and its ability to work such way in the long term.
That’s why I manage my trades very aggressively. How aggressively? Well, I have closed 35 out of 71 transactions at “close to zero” point. I’m rather content that I did so, since stock markets (S&P500, UK100, Eurostoxx) continue to ignore COVID-19, economic downturns and even new lock-downs. They live on future’s “good projections” which are based upon potential new support programs and hopes that the virus will eventually be contained, and everything will come back to normal.
How long these projections will last? I don’t know. I think nobody does. Until there will be real solutions for current problems on the table, nobody can really predict further market movements. All those who claim that they 100% sure about the market situation without assessing all the risks involved are simply fools. Such claims are similar to those statements coming from various “covidiots” who are convinced that the COVID-19 is a scam, or truly believe that Bill Gates is going to chip all of us.
So, what’s next?
I don’t see any reason why I shouldn’t continue to act as aggressive as I did in September. I will continue to look at the economy trying to survive the second wave of COVID-19, and I’ll look at US dollar chart, which I’m certain is one of the most important charts right now. I will continue to wait for the stock index to fall, and wait for Bitcoin prices to rise, as well as whole crypto market to revive once again. I also expect that the gold and silver prices will rise. And, of course, I’ll try to spend more time on my blog.
Overall, I think that this time is great to keep up with the financial markets since such situations usually create enormous opportunities. Any periods of changes, uncertainty, and especially shocks, are periods of opportunity that have to be properly exploited.
My goals till end of the year – dedicate more time for my blog and finish this year with a profit!