Posts Tagged ‘discretionary income’

Trading in a Recession

Wednesday, June 3rd, 2009

Trading during a recession, depression or economic downturn raises it’s own set of questions and concerns for most small traders regardless of market or trading instrument.

We all know that psychology is probably the most important part of the profitable trade equation, and when one is facing the loss of livelihood let alone discretionary income, it isn’t always easy to stay cool and unflappable in an open trade when the stakes just got way high.

One of the best ways to stay in the game even if you’ve lost your nerve to a large degree, is to find a fund manager or commodity pool that has managed to continue getting steady returns in the last two years, and give them some money to trade.

Yeah, I know, after Bernie Madoff, who do you trust?

That, my dear Watson, is the subject of a future post :)