You have to adjust to current market conditions, but momentum
trading really doesn’t change. It’s the difference between strategy and tactics.
My tactics change, but my strategy doesn’t.
One always has to adjust to the current market behavior despite the invariant
outcome of the market, which is to serve up all the same chart patterns over and
over again. Some tactical changes a trader must address in adapting to current
market conditions are reflected in the questions, Is the market simply drifting
higher, or is it roaring higher? Is it a sluggish market, and do breakouts
commonly fail? And one of the most important tactical variations of all is not
being on margin or in options when the market goes into a correction. I’m a
momentum trader who adapts his style to what the market throws at him