2020 almost gone. Now what?
Trading this year has been nothing but challenging and well, interesting. 2020 started reasonable normal. Most of us invested/traded as we have in the past, trusted our indicators and research to make reasonable trading decisions in confidence. The way it should be. Up until sometimes in March. Then, as we all now know the market became very unpredictable. Hesitation set in, and that is not a good thing in trading.
Personally, I cashed in a big chunk of my modest portfolio. Most in the green – preserving the 12 month average pretty good performance. Then of course, the market kept rising up in spite of the fear of a crash and insecurity kicked in. I missed out, didn’t I? Is there a crash coming on Monday? Should I be lining up shorts? How about I trust the market to do the right thing?
I did very little. I did score a few points here and there but by sheer luck – not skills. I went into the read a bit in FOREX before I cashed in. That’s how I spent the rest of the year trading-wise. Sitting on the sidelines. Frustrated by all the opportunities I missed. But that’s the old saying: “Can’t should have could have”.
So here we are. November almost gone. Trading is status quo. No profits, but no losses either. The election thing. COVID. Sitting on 90% cash. Insecure. Almost afraid to even look at the market for opportunities. Because I can’t trust my strategies. Sounds depressing? Well, it is not really. In my mind trading at this stage in life is about preserving capital. Live to trade another day.
Now what? Is the market getting back to “normal”? I don’t think so. I do watch the market, and in my opinion there is too much risk of something drastic happening. Sure, it appears right now that the market has – to a point – shrugged the current events. But Murphy is alive and well! As soon as we feel comfortable to trade again, something will happen. Sounds negative but it isn’t really. It is simply a preventing disaster thing.
At some point in the future we will again feel that the market has stabilized and you can trust your instinct/research/indicators. And I can’t wait! Well, I can and I will.