Improvement: Match-making and markets

Every trader needs markets that ressembles them as a person – their moods, their dynamism (or lack thereof!), their timezone, and any other more ridiculous aspects that you might think of.

Timezone makes simple sense as there is little reason trying to play a game who’s rules change each night while you are asleep. Being in markets means watching them, eating them, and breathing them. It doesn’t mean trading them all the time, but that IS the best way to feel the mood of the market. These are the things that give a feel for why a market is acting why it is, and how it might be best to react or adapt. This may start to sound like relationship advice but bear with me.

Being in markets with a plan is important. Having an idea of what time-frame you expect to trade, how many trades per day/month/year you expect to do, can really help structure an approach, but these things should naturally appear out of any apprenticeship/novice period. It can be very tiring to trade high frequency for some people, while for others it suits their personality well to only be active for short periods dedicating the rest of the time to training: charting, reading, & watching. Some people are more comfortable taking a position and sitting on it, particularly on a winning one – which can be difficult. One should never sit on a loser.

Some markets and an idea of their personalities:

$eurgbp is a typically slow paced market with relatively low volatility, as are many mid term bond markets.

$OJ (Orange Juice) and $NG (Natural Gas) among others are very illiquid (not much volume trades consistently) and jumpy markets that can drive a mind demented and a body to ruin but can of course provide great opportunity with good discipline!

$EURUSD, $SPY (S&P500), $RX (German 10 year Bund) are the biggest animals of them all (very high volume and liquidity) and as such for me are great markets as when they move they really move, and as far as I am concerned the “behave well” technically (a break-out is a break-out, and a failure is a failure among others!). These can be nice in the very short-term (as a technical trader) and in a medium termbut often noisy in the “wrong” time-frame.

Try them all in all time-frames and the right one *should* find you!!

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