Most difficult trading environment since 2011

I've been trading since 2003.

And if you're a position (swing trader , medium term) trader, you'll know there comes a time where the markets flow in a difficult range...

There are two types of markets when it comes to strategies.

Favourable and Unfavourable.

Right now, I don't mean to speak for everyone else, but I believe the markets are in an unfavourable territory for medium term traders.

Initially, I was blaming the JSE ALSI 40 (South African) index.

I blamed the Load Shedding (cutting of electricity)
Incompetency of the government providing sufficient water and services
I blamed us being downgraded to grey (which has pushed out Foreign direct investments).
I blamed the low liquidity and volume and the blame game kept going on...

But then I realised something even more problematic.

This horrible market environment has not only been for the JSE ALSI 40... It's been for the ASX (Australia), CAC40 (France), DAX (Germany) and even UK 100 (FTSE 100)...

And I'm sure there are a lot more stock markets that have had this tight and ongoing range...

So, what market environment are we in at the moment.

It's not going up so it's not the Mark-up phase
It's not going down so it's not the Mark-down phase

We can either call it Accumulation or Distribution, but it's been moving in a sideways range for obver a year.

So clearly we are in a larger market environment, which is known as the capitulation stage.

The volumes are low worldwide, the prices are erratic and volatile.

Many traders and investors are holding tight onto their money and not even dabbling into these markets at the moment.

How long will this last?

Well in 2011, it lasted two years. And right now, we are not seeing any strong signs of change yet...

So what do we do?

Well I don't have the holy grail nor some incredible points. But I can share what I'm doing during these timultuous times...

1. I've reduced my risk to 0.5% to 1% per trade (Instead of 2%).
2. I'm always hedging with Longs and Shorts
3. I'm trading other markets (Forex, Indices and intraday trades).
4. The drawdown isn't bad so I haven't halted trading
5. I've come to terms that this is the new normal for the next year or too.

Expect disppointment and you'll never be disappointed. You learn a thing from Marvel Movies now and then...

What are you doing and can you relate to these difficult trading conditions right now?

What are your thoughts on the matter?