Recession/inflation...TRADING???

This is a discussion on Recession/inflation...TRADING??? within the General Trading Chat forums, part of the T2W Archive category; Livermore made more in bear markets than at any other time. 'Day trading' is opening and closing your trades within ...

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Old Sep 5, 2008, 7:43pm   #8
Joined Nov 2007
Livermore made more in bear markets than at any other time.

'Day trading' is opening and closing your trades within a day, by 'other formats' he means position or swing trading where you hold positions for longer.
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Old Sep 6, 2008, 12:46am   #9
 
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True day trading results are not correlated with the economic cycle. Unless perhaps there is a very extreme downturn and the liquidity and volatility in your favourite markets dry up, but this is unlikely.

Also it could be that your day trading strat is a 'long biased' momentum style. Your results will not be as good in a bear market as even though there will still be strong up stocks they will be less frequent.

As a trader you will have your own booms and bust periods, where your equity curve will shoot up and up and periods where nothing seems to go your way.

Another thing to consider is that if you own a Home then you probably no longer have access to a HELOC in the credit crunch. This might have been good as an emergency life line should your day trading business fail and you need to find another line of work. Even if you never planned on using it, it was still good to have.
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