I am finding it really difficult to trade at the moment. The market doesn't seem to know what it wants to do. Even Garth Mackenzie was saying the same thing on Traders corner. Even when there are breakouts there is just no follow through. He advises doing nothing for a while ie. no trading and just preserve your capital. That's easy to say but what do you do when your dopamine levels get low-where do you get your fix? Anyone else finding it difficult?
Russ, on a serious note, before my aspen profit , I was only R8800 up in my trading account. (1 Jan 2016 to current).The market is indeed a good teacher but R8800 does not begin to justify the time and energy that went into planning /executing and exiting the trade.
Most of my losses have been caused by "Black swan event" coupled that with Volatility then this is taking trading to another level. It is for that reason, that I decided to liquidate my trading portfolio and I have transferred the cash out of my SBK online account.
breakout trading is notoriously unsuccessful. Lots of documented studies on this. The original breakout traders - the Turtles - boasted like 30% success rate, or something like that. They looked for the big trades to make up for the failures and drawdowns. Some folk have actually implemented 'short the breakout' strategies - capitalising on the overwhelming likelihood of a 'breakout takeout'. Anyways, we have just been spoiled over the last few years of not having to deal with extended range bound markets. But lots of strategies on how to trade ranges. Just do the opposite of what your heart / nerves tell you