Difficult 6-months in the Markets

difficult market

It’s been a very difficult 6-months in the markets, at least for me. After a record 2020, and a strong 2021, a slap across the face by Mr Market was needed to remind me to be respectful and remain humble. It’s happened before.

For many however, dealing with drawdowns, either deep or extended, can be very difficult. (I’ve written and talked extensively about drawdowns previously, HERE, HERE and HERE). I feel the trick is to not avoid, but rather to understand why and to push through.

But that’s always difficult at the time. Trish listened to a podcast with Leigh Sales who made the following comments…

“If you want to achieve highly and reach goals, we know it’s going to involve some failure. Working at your capacity is going to be uncomfortable because you’re at the limit of your capability . [You will feel] Anxious. Scared. [But] embrace the fear and push through – [there is] relief at the other end”

As is commonly said, the darkest hour is just before the dawn. However, when trading, many give up at that darkest point and often just as things turn positive.

I don’t need to look too far back for a personal example. This time 2-years ago, on June 30th 2020, my US trend strategy #1 was -4% for the year.

I remember it well because I went from 100% cash to 100% fully invested on July 1st. Many of my Twitter followers seemed perplexed, afterall, it was in the dark depths of the COVID crisis and widespread George Floyd protests in the US.

That portfolio finished the year +54.1%.

Granted, being -4% may not be an insurmountable hole to dig out of. However, in these Bitcoin days of immediate profits, waiting 6-months is probably not appealing.

I’m not the most profitable trader on the planet. Far from it. But the ability to plod along, accept the good and the ugly, has paid nicely for the last 37-years.

2020 was the year of Tesla.

2021 was the year of Moderna.

2022? I have no idea.

If you enjoy my weekly news then please consider joining The Chartist. We trade right alongside our clients.