“For every style of trading there will be a “perfect” market environment. When the market is aligned to the strategy that you are trading, every trade will work itself out smoothly, losses will be far and few between, and you will feel on top of the world as you watch your profits accumulate! ……Sooner or later the market environment will shift, if ever so slightly, and losses will once again begin to appear…..This constant cycle from “zero” to “hero” and back to “zero” is why i believe speculation as a business has such a high failure rate.”
This is a subject that you will hear all top traders talk about.
Nifty moved Today 398 Points in 6 hours and if You were doing intraday trading and not flexible and did not adopted to changing market conditions could have made big loss.
This i think is one of the many keys to trading survival. The trader’s ability to adapt very quickly to an ever changing market environment. There are traders who do great during higher volatile environment but lose it all during the sideways move.
Many traders will even feel unbeatable but once this trading environment that was so conducive for that particular style starts to fade, this same strategy will be responsible in taking back most of these traders’ hard earned gains that they accumulated during trending markets simply because they failed to recognize a market shift.
So as a Trade you need to develop the trait of being flexible and change as per market condition.