Let’s start thinking outside the box.
When you want to do some DIY around the house, you need the right tool for the job.
Trading should be the same.
We should use specific strategies for a specific purpose.
Too often, retail traders fall into the trap of forcing one strategy onto every market.
Sometimes the market calls for a bigger picture strategy
A great example of this is Gold & Silver this year.
The metals have been on a tear, and I personally have tried to buy Silver on every pullback.
Why? Deep macro themes:
Global uncertainty and geopolitical risk
The Federal Reserve’s dovish pivot and rate cuts
Weakening USD trends
Inflation fears creeping back in
This kind of setup is not for short-term strategies. It’s a longer-term narrative that calls for swing trading or position trading. You let the fundamentals play out over weeks, not minutes.
If you used a tight stop or low timeframe strategy here, you’d probably get shaken out of a perfectly good idea.
Short-Term Tools for Short-Term Plays
Every year, the stock market has a tendency to rally into the year-end, often dubbed the “Santa Rally.” It’s not a new trend, and while it doesn’t guarantee profits, it does tip the odds in your favour.
This kind of setup is perfect for short-term momentum strategies. There’s no need to marry the trade. You’re in, you ride the seasonal sentiment, and you get out when the momentum slows.
Your Strategy Isn’t Your Identity
Think of strategies as tools.
The best traders don’t just have a style, they have a toolbox.
They know when to use each one based on the setup in front of them.