Home > Lessons from the trading floor > We are in a new type of market

We are in a new type of market

There are many traders we speak to on a daily basis who are very frustrated while the market keeps making new highs. “Normal” market conditions for a trader would be 3-5 days in a row up, in an uptrend, 2-3 day pull back then go long again.

This is not your dad’s market anymore. The trading environment we are experiencing today is that of a global market. US traders are trading our market and quite often one or two foreign markets as well. Foreign traders are trading our market as well. Buying and selling pressure is coming from all over the world now, it’s not just domestic money.

Traders who are frustrated are trying to guess or anticipate a market turn, and with good reason, we have not had a consecutive day run like this in over 80yrs.

 My point is this, good traders who last in this business adapt. Old school traders who have been nibbling from the short side “because thats what normally happens after a consecutive streak like this” are off balance right now. It would appear that the globalization of trading has created a new paradigm that we need to adjust to.

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