I prefer to talk about trading and leave the politics to the pols. But in the good ole US of A, politics can have a big effect on the markets. The reason is very simple – markets move on the emotion of the traders participating. I have said it before and I will say it again – the hardest thing for me to do is to ignore my rational thinking and try to analyze the markets from the standpoint of emotion – especially when the emotion is so chaotic.

Virtually everyone in the USA knows that we need to do something different in Washington. But the specifics of what should be done seems to be a bit cloudy – even the most outspoken candidates, such as Trump and Carson, are now all that clear – at least to me – about what they would specifically do to shrink the size of the federal government. And I will state without equivocation, if we do not shrink the size of the federal government – and pretty darn soon – our ship of state will have a very hard time staying afloat.

In my life time I have seen our nation go from a place where people sought something for effort – to a nation where too many seek something for nothing.

So our politics are in chaos – and that chaos will not end after the next election. Personally I think that the chaos will get worse no matter who is elected. If a conservative wins they will have one helluva rough time trying to change things. If a liberal wins they will have a rough time trying to keep the gravy train rolling. Either way, it looks like things are going to be chaotic in our politics – and that will transfer into the markets.

If you don’t feel comfortable trading in a market controlled by chaos, you are going to be in for a bumpy ride. My trading is very short term and therefore helps me avoid much of the danger of market volatility caused by chaos. It even offers me opportunities to profit when the market goes to extremes – almost always overdoing it in one direction or the other – often both.

Today I have been watching the AUSUSD pair. It is getting over sold. But my system has kept me from going long just yet – it tells me that the market is most probably going to take the Aussie dollar even lower.

A good trading method has two purposes – put you into the market when a good trade is probable – and keep you out of the market when a good trade is not probable.

If you don’t have a good system for short term trading, check TBL. It really works – if you are willing to work. There are no free lunches in the markets. The only way to make money in the markets is to take money it from those that make their living taking money from others.

It is possible, but, no matter what you may have heard, it ain’t easy!


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The unique trading method that is Trading Between the Lines