In this section I explain some of the strategies I use. Some may be obvious, some you might find strange. All I can tell you is they seem to work for me!
And then, after this, we’ll take a look at how I put these strategies into action, with a study of some of my trades.
Sometimes news breaks about a particular event, and this pushes the market in a share or index one way or the other. Often I find the market greatly overreacts to such news, so there is short-term money to be made in determining if the market will go back to where it was before the event happened. This can often be quite straightforward.
An example: late in 2009, Dubai said it couldn’t handle some of its debts and this caused the ...