Never Let Politics Play A Part In Your Trading #trading #stocks @IBDinvestors @MarketSmith

Emotional trading leads to bias trading, and bias trading leads to an eventual destruction of your trading account. Trust me, I learned the hard way. After trading extremely well part time for many years, I decided to turn things up a bit in 2007 by trading full time and had a pretty good year returning about 41% on my portfolio. In 2008 we had a new president and as the year progressed I become worried that the new administration would wreak havoc on the markets with some new policy initiatives and I steadily built a very bearish bias. Rather than execute my game plan, listen to what the index action was telling me on a daily basis and letting the price action, especially that of leading stocks dictate my trading, I saw a short set ups in most every pattern that came across my screen, and while I profited for a while on the short side, my bias toward a sinking economy under the new administration at that time, left me ill prepared for the possibility of a huge turn in the markets.  Well if you are any kind of student of the markets, or at least conscious, you may not have to guess as to what happened to my performance. The market bottomed in early 2009 and rallied around 80% through the end of 2010, not a good time to be on the sidelines, or firing off a whole lot of short trades.

The year 2019 brings us yet more political noise and I advise you to stop trying to guess what effects this will have on the markets. Those who had a bearish opinion as a result of the Trump victory in late 2016 felt the pain of being on the wrong side of the market. What will the political winds bring us in 2019? No one really knows, and if you come across someone who insist he does, run away quickly! Stick to your methodology and execute your trading plan. Pay attention to the major indices on a daily and weekly basis, and most importantly, focus your attention on market leading stocks and sectors and listen to what they are telling you always bringing with you a clear and open mind to the markets everyday, and dare I say, Trust The Process!

-CJ Agresta

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