Thursday, August 7, 2008

I hate downtrends

I started trading in March of 2003. I had absolutely no idea what I was doing. Some would argue that I still don't.

The market has been in an uptrend since then and my love for long position trades was rewarded by the trending market. Things have changed, and we are officially in a downtrending market. I've never traded in this kind of market, and my frustration and confusion has demonstrated that I haven't been around long enough to know quite what to do.

The Zweig screen did quite well in the last downtrend (2000-2003), and it will probably do well (eventually) in this one (chart is from AAII.com). I don't intend to abandon my bread and butter. I'll continue to keep an eye on different screening ideas.

I'm trying to develop some flexibility so that I can face new market situations without the frustration that I've experienced this year. I love to screen for stocks, and I love mechanical investing. It just isn't working for me in this environment, so I'm trying something different.

No comments: