A question we get asked quite often during volatile periods in the market.

What is our plan for next few weeks to a month?

And our answer is always the same: “If you want to know our plan, you must first tell us what the market is going to do.”

And this reminds us of a great conversation that took place between Duke of Wellington and one his generals

On the eve of the Battle of Waterloo, in 1815, the Duke of Wellington was asked by one of his generals to describe his strategy for the next day, so that in the event Wellington fell, the others would be able to carry out his master plan to defeat Napoleon’s armies. Wellington was flabbergasted by the question. “If you want to know my plan,” he replied, “you must first tell me what Bonaparte is going to do.”

Successful traders have to be ready to change their methods, plans and strategies, because market conditions are very difficult to predict in such environments.