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mohsinqureshii

Volatility - Friend or Enemy

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What are your feelings about volatility? Does it scare you? Does it make your eyes light up when you see it? Discuss here.

 

My views about Market's volatility are that I enjoy trading in volatile markets - I love it when markets are coming up and down frequently - I enjoyed trading them when I make a good amount of money or loose them - However it make me more aggressive while trading and I can trade a lot of positions with small profits and small losses. In my opinion its dangerous as well but have to take risks as I believe without risk there is no success.

 

What's your success story concerning Volatility?

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What are your feelings about volatility? Does it scare you? Does it make your eyes light up when you see it? Discuss here.

 

My views about Market's volatility are that I enjoy trading in volatile markets - I love it when markets are coming up and down frequently - I enjoyed trading them when I make a good amount of money or loose them - However it make me more aggressive while trading and I can trade a lot of positions with small profits and small losses. In my opinion its dangerous as well but have to take risks as I believe without risk there is no success.

 

What's your success story concerning Volatility?

 

Some trade methods are sensitive to volatility and others are not.

 

I love volatility but that's because my trade methods are sensitive to key change in volatility. Thus, when volatility is low...I tend to be less aggressive in my trades in comparison to being more aggressive when volatility is increasing or high because the latter has more trade opportunities.

 

Therefore, if you like volatility trading, be careful when volatility is low.

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Higher volatility will be associated with higher profits for most active successful traders. This may not apply to less active traders but certainly for day traders, swing traders, etc. You may want to see my thread on Two Dark Swans of Stop Losses for more as to why this is the case. Some longer term trend following methods might benefit from lower volatility. Extreme volatility is often not beneficial.

 

Volatility changes often cause difficulty for traders...

 

What are your feelings about volatility? Does it scare you? Does it make your eyes light up when you see it? Discuss here.

 

My views about Market's volatility are that I enjoy trading in volatile markets - I love it when markets are coming up and down frequently - I enjoyed trading them when I make a good amount of money or loose them - However it make me more aggressive while trading and I can trade a lot of positions with small profits and small losses. In my opinion its dangerous as well but have to take risks as I believe without risk there is no success.

 

What's your success story concerning Volatility?

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Being day-trader I like higher volatility. It actually makes trade management decisions easier, it either quickly works or it doesn't. Also during high volatility price action tends to have better defined and orderly swings...

 

Having said all that, congratulations to everyone with the coming Autumn, hope it brings us the typical Autumn vola! :cool:

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'Volatility' is good for day traders. It means more opportunities and time to get into the flow of the market. What imho day traders often find difficult is sudden changes in volatility. When that happens they might push too hard, not hard enough, hold a trade for too long or too short a time or get caught out fading the market.

 

Movement = good for day traders

 

Sudden shifts in volatility = can be good (if sudden increase and a trader is prepared), often bad.

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as a nooby stock swing-trader with a small account, i like relatively low volatility. slow and steady price increases are my best friends.

 

Exactly my current view of volatility. Unfortunately, I haven't achieved the level of trading skills that would enable me to trade any kind of swings, but I'm stubborn and keep getting into.

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