First rule of trading is to know your strategy and to be perfectly clear on why you are executing a trade.  Trending environments are the best opportunity for my strategy as I am a trend follower.  Over the last four months we have seen some very interesting and distinct trends.

August and September proved to be difficult months for the major averages, but proved great trading opportunities for both intraday and swing trading techniques.  October was a strong rally month but also proved to be an excellent month as it was "Get Long and Get Loud" as my old mentor used to say when the market was rallying strong.  Then all of a sudden November came and the trend was reduced to days and sometimes simply minutes and now December seems to be carrying that same torch.

Referring back to the first rule, you must also make sure you make a lot of money when the market suits your style and sit back and be small when it does not.  As I head into my last day of trading as I will be on vacation, I think it is always important to reflect upon what has worked and what needs some work.  

This analysis has helped me to be a successful trader for 20 years and it is clear that my style works well when the markets have a clear direction and a trend that I can simply follow and wait for the important stopping points.  I feel that as volatility has increased since 2008, my style has adapted to that heightened volatility and I am able to weather the storms better than in the past.

Make sure that even though it is now the time of year to relax and enjoy the holidays with family and friends, take some time to reflect on your own style and learn what you wish to emphasize for the coming year.

Happy Holdiays to all and trade well!