Thursday, April 2, 2009

Short Run vs. Long Term

  As intraday traders we are constantly in the moment and executing trades.  However it is necessary and beneficial to periodically take a step back and look to synthesize our immediate involvement with a long term sustainable approach.
  This past week has provided opportunities in the market.  Over the course of two separate days midweek I noticed a clear distinction in my trading when taking the extra step to think about the current trends and environment and extrapolating that information into my trading. News stories have shown themselves to be profitable (see MLM, CREE, WPI, STAR).  High beta names have been a more difficult trade.  More importantly there has been market activity throughout the entire day.  A patient wait and evaluate approach until something has shown itself has proven to be a good strategy.  Will it stay this way for a week? a month? longer?
Who knows.  The important element is to notice this and be aware of the environment we are in, what trends are paying, and to be involved in them.