The FTSE 100 has seemingly gone into freefall taking out all gains since mid-2016.
A fall in the value, to some extent or other, can be seen in all indices; and with much uncertainty to follow in 2019.
Selfishly, this is not our concern with the Slow Trader fund. We are over 41 per cent up since the start and without the worries that plague traditional funds. See Slow Trader Hedge Fund.
We can make that last comment with some confidence because of the way we trade. We day-trade on a small time frame, but we buy or sell (long or short) with little bias to the fundamentals. We only go where the price action is going.
A justified objection to day trading is the unexpected effect that short-term news can have on results; this is valid. But we trade away from news events whenever possible, and quite often a warning of a prior news spike will show to the watchful trader.
‘Breakout day trading’ parts one and two provide in some detail how we traded for most of last year: an aggressive breakout style that can result in significant gains; and, as much fun as that is, in matching losses too. Not so much fun.
We have moved to a more cautious style of breakout trading. The gist of which is in ‘my mantra‘ or can be
A detailed description of our ‘conservative’ trading method will follow as 2019 progresses.
We know that our revised and cautious and compounded trade procedure will provide the future build in the fund that we want.