Monday, May 3, 2010

The Daily Note - April Showers Bring May Flowers

What does that mean for traders? Well perhaps that the opposite tends to happen in May than what happened in April? If so, is it because back a few years, traders tended to take profits for a about this time of year and the rest of the world was preparing for some well deserved time off?

The saying to "Sell in May and Go Away" testifies the the above sentiment; yet it has been my experience that many traders do not go away in May if the conditions for trading are good. Given enough indicators that the market will stay warm to exchanging wealth, traders continue to make plays until about mid-June or when school lets out and continue to stay out until after labor day weekend.

Perhaps what traders need to look at is their own style, can it be adapted to slower trading or does the strategy have to change? Summer trading can be slow and frustrating at times but it can pay its own rewards by allowing honing of skills and becoming more in tune with the trends than can pay off well in the fall.

So whether your May flowers are profits you are gathering or the long awaited thawing to the reversal you are planning, it is good not to go away for too long because the markets are always changing.

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Happy Trading, Living and Dancing

Today's BlogPick - MA also remember Friday hold ASIA

©DayTrading with Anni 2010

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