Atypical markets need atypical thinking.
What do we mean by that?
Well, in the last few years the market has been highly unpredictable, probably unstable as never before. Emotional trading has hit the highest point, and in consequence, the moves in the indices have been hard to believe.
This unpredictability has made the trading tools investors normally employ not as reliable anymore; the time frames they habitually consider are not as reliable, and the correspondences between investments are completely misaligned.
Let’s dig a little deeper.
In normal circumstances, a good investor looks at daily charts to find trade opportunities; however, because of the present radical unpredictability, he should apply the same indicators he normally uses, but… on hourly charts.
For instance, for the longest time we have seen how the futures markets led the ETFs -Exchange-Traded Funds-.
Normally, when the S&P futures and Nasdaq futures were overbought or oversold, the Spyders and the QQQQ moved in the other direction.
Nevertheless, out of the blue, the futures have become so unpredictable that it is hard to know when to pull the trigger on a trade, to the point that now it appears as if the situation has flipped and the ETFs are the ones leading the futures.
Isn’t this exasperating? Of course it is!
But you have to understand and accept that the market is not at your service; thus, it is you who has to change to deal with the market you are in.
We don’t mean you have to change your principles, but you can’t be inflexible in your approach to making trades and money.
In this crazy market, it is crucial that you keep your investing strategies simple... and an open mind.
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