MLR - 2011 has been the most frustrating market ever in my 10+ years of trading. When will things get easier?

Published : June 21 2011 at 9:11 ET
Making money then giving it all back and then some is the nature of 2011 which has been for the most part a trendless choppy market wrought by cross currents of quantitative easing (QE) that prop the markets, and headline news (Japanese disaster, European debt issues, etc) which hammers the market.The key to trading in such challenging environments is to always obey your stops so your losses are kept to a minimum, then when a new trend emerges (and it always does), you are there to jump on board and potentially pyramid your position. The gains made catching a trend should more than offset your small losses provided you obeyed all of your sell stops.

Now that QE2 is ending at the end of June, it should be interesting to see what the market serves up in the days and weeks ahead as the Market Direction Model looks for its next entry point.

Practice patience, and continue to keep your eye on the markets since markets can turn on a dime, such as on September 1, 2010 when the MDM went to a buy signal at the beginning on a new uptrend, or on March 12, 2009 which spawned the beginning of quantitative easing.

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