subject: You Must Have A Full System For Different Market Conditions You Will Be Leaving Money On The Table [print this page] No matter how good your setup is, it wont work under all market circumstances. Im not talking about here of a simple bull versus bear market; this would be a far too simple definition of many different markets that will go through during a traders career. There are so many different market conditions that one might go crazy trying to define a setup for each. What we can do is to determine the market conditions that occur the most and define a trading strategy for these ones.
Some market conditions will happen in a way that no one could ever predict it. Sure you can prepare your setup for a bear market, but isn't a bear market way different from a market in a recession? What would you do if the company that you have put it all your lifes funds suddenly went bust? This is a tough and hard question to answer and it does make you uncomfortable. Unfortunately, if you want to be a successful trader, you will have to deal with it.
You can either stand up and deal with these kind of questions as soon as possible so in case of an event of that magnitude happens, you are fully prepared, or you will be facing some serious trouble ahead when something like that does happen. I prefer the former since it will enable me to better prepare myself for any catastrophe that might fall upon our heads.
Of course that just because you are preparing yourself to confront any serious and threatening catastrophe, that does not mean you should live in fear. You must balance the attitude and have the right mental awareness that will enable you to act with confidence and without fear, but at the same time keeping an eye in case something out of your control happens. This is not easily achievable but one must strive for it or he will not have any chance in the stock market.
