Hi guys! It’s been a while because my trading style has changed over the last few months and I’ve really been trying to figure out what i’m comfortable with. I want to address how President Trump is affecting the stock market. In my opinion, leading up the elections in America and beyond during his time in office, the markets have been extremely erratic. This has affected my win rate when applying my usual strategy. Therefore, I have adjusted my approach. More below!
How President Trump is affecting the stock market – how it’s affected my own trading
During the period leading up to the elections, my usual win rate was not materialising in my own trading style and strategy. I started to understand that President Trump is affecting the stock market. As my followers know, I apply a MACD entry across multiple timeframes and get in at the support per the daily timeframe. During the period leading up to the elections, what I was finding was that the charts were indicating a good buy entry for me, but then shortly after entry, the price would come crashing down. This phenomenon has not ceased during the time that President Trump has been in office, and I have heard many other traders confirming that their own strategies have been affected by him being in office. It seems whenever he opens his mouth, the markets either come crashing down, or they start to shoot upwards. This phenomenon is believed by some to be deliberate!
So what have I done about this in my own trading style?
I have adjusted my style to become more ‘loose’ and manage risk in a slightly different way, so as to avoid the chaos which was ensuing as a result of the way in which President Trump is affecting the stock market. I have stopped using a stop loss. (I do not encourage you to trade without a stop loss unless you really know what you are doing!). I enter minimal position sizes until i’m sure that the market is going in the direction I predicted and I increase my position size as it progresses in the right direction. I make use of very little leverage. I am now moving my stop loss to follow the trend upwards on the daily timeframe. Mostly I am doing this on the indices such as the NASDAQ and the S&P 500. I move my stop up below the previous low of the trend, as the position moves into profit and keep doing this. When the market reaches a peak on the daily timeframe, I am very cautious about getting into larger positions and once they start pulling back, I allow them to stop out against the stop loss which, at that point, is in a position of profit.
I have found being more flexible with my trading style is working well for me and is helping me to avoid erratic swings due to news or announcements. I do not close the small positions I enter when they go against me – I just wait for them to start coming up again.
So to summarise:
- – I enter small positions until i’m sure of direction;
- – I do not make use of a lot of leverage – if the markets completely go against me, I am aware that I have enough money in my account to not get a margin call in light of the position sizes i’m trading. Even if the market went down by 50% of its value, I would still not get a margin call!
- -I enter larger positions as the markets move in my favour;
- -I enter a stop loss on the chart in a position of profit only (or neutral) and continually move it upwards just beneath the previous low of the trend
- – Once the price reaches the peak area on the daily timeframe in terms of the previous high, I proceed with caution, and if necesary I allow the positions to trigger my stop loss which will be in profit at that point.
I hope you found this useful – even if it’s just knowing that you are not alone in believe your trading outcomes have changed from the way President Trump is affecting the stock market, since around the time of the elections. Please comment if you have found that his term in office has affected yFor more great tips and advice on trading the stock market, please visit:
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