Chart Courtesy of StockCharts.com
Chart Courtesy of StockCharts.com

Adjustments I have had to make in 2016 due to the market environment:

  1. I am trading at half the position size I did from 2012-2015 due to the expansion in volatility and average daily trading ranges. Even this is too big at times.
  2. I have not been able to buy any individual stocks for longer term swing or trend trades due to so many in downtrends and dropping quickly regardless of how well the company is doing.
  3. I had to lower my time frame to capture any profits while they were there before they disappeared.
  4. Holding positions overnight has been dangerous with the market having large gaps in either direction. I have been primarily day trading in 2016.
  5. I had to take my retirement account to cash at the end of 2015 with the loss of the 200 day SMA and leave it in cash equivalents as the market was presenting too much risk for any longer term trend trades with size this year.