Roubini is Bullish on the Stock Market What does that Mean For Trend Followers
Roubini is bullish on the stock market. What does that mean for trend followers? Actually nothing. It does not mean that the stock market is safe to invest in. It is simply Roubini’s opinion and he has been wrong.
Roubini was very wrong…According to CNBC, Dr Doom Nouriel Roubini has issued a call that the stock market is expected to fall by as much as a further 20%, not stopping there he also stated that a double dip deeper deflationary recession is likely. Roubini made his call on Thursday with the Dow trading at 10,185.
Actually one could even take this a bearish omen. Regardless Trend followers do not predict. We react. I have been long the SP and ND since the end of Dec 2011. I had no prior knowledge. The SP and Nasdaq happened to be one of the strongest markets at the time, I was able to risk than 1% of my total account size to see if the trade would work as well as all my other risk management filters all flashed a green light, I took a shot and said to myself “How much is this going to cost me to see IF it work”. No predictions …no emotions..just following my plan that I have been following for years. Profits are made over long periods of time. There will long periods of non profits as well as steep draw downs. This is trend following. It is not retirement in the box.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (“FOREX”) IS SUBSTANTIAL.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
** THE MATERIAL DISPLAYED ON THIS WEBSITE IS INTENDED FOR EDUCATIONAL PURPOSES ONLY