Back in the Game

Okay, I could say I told you so, but I’m not going to do that.  The market finally had that correction we’ve been talking about.  Now it’s moving up again.  What a wild couple of months it’s been.

I’ve been silent over the last month, for a number of reasons.  I, like many I’ve talked to in recent weeks got caught in the unexpected (and as I’ve blogged, unsubstantiated) market rally and lost some money, but more importantly have found myself questioning my strategy in this volatile market.  I’m back in the game with a different attitude and a more conservative strategy.  I’m still trading the iron condor but I’ve diversified my strategy and have moved to a more conservative ROI expectation.  I have found that in the current market, you can’t count on what has worked historically to continue to work now.  The market is changing.  Once upon a time the market reflected the performance of  American based corporations and reacted accordingly.  More and more the US stock market reflects global economic conditions and even more concerning is the market movements that are a result of electronic trading.  Now I am not against electronic trading, I like other investors depend on it.  But after the “flash crash”, you have to wonder, can that happen again.  Going forward it one thing you can take to the bank, the market has changed and it would behoove you to recognize that and trade accordingly.

Happy Trading!