Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

xinxinzaizai

How to Trade in High Volatility Market?

Recommended Posts

Hi,dear all,

 

I am a new trader in stock index futures. The volatility and uncertainty of price action of the index futures confused me in trend identification & position holding.

 

Can anyone let me know how to bear a high volatility situation and hold the positions?

Share this post


Link to post
Share on other sites
Guest epic research

It might be difficult for the beginners but for the experienced one trading in high volatile market is not a big deal.

Share this post


Link to post
Share on other sites
Hi,dear all,

 

I am a new trader in stock index futures. The volatility and uncertainty of price action of the index futures confused me in trend identification & position holding.

 

Can anyone let me know how to bear a high volatility situation and hold the positions?

 

Hello,

 

Position-sizing is probably the answer.

 

If you're daytrading, then as the post above points out, volatility is your friend. You get more movement in the contract (ie possibility of profit) for exactly the same fixed costs (spread, commission). As a daytrader these costs are your main enemies, and volatility helps you to minimize them. Volatility takes you closer to the kind of movements that longer term swing traders look for, but within a much shorter time period.

 

In terms of "how to bear a high volatility situation and hold the position" - you need to be able to cut the position down (if it's causing you problems). This means taking some contracts off.

 

Hope that helps.

 

BlueHorseshoe

Share this post


Link to post
Share on other sites

You need to have a plan laid out before hand which states how you're doing to deal with the volatility. The problem for new guys is that volatility gets them emotional, and that's when you will have poor judgement in the heat of the situation.

 

If you plan for volatility before the day starts and lay out a process of how you will deal with it then you'll be ok

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.