Hello guys, Curious how you all experience the kind of volatility we're currently having? In general, do you prefer trading (very) high volatility or calmer markets? One could argue that higher volatility brings more opportunities and larger moves, but unless you're taking on larger risk, you'd usually have to size down as a consequence of requiring larger stops, so your pay day may or may not be bigger as a consequence. Personally, I prefer it when the volatility and pace is a tad slower than what we're currently seeing. Makes for more predictable action and more relaxed trading. Curious to hear your comments. I'm sure there are some who are absolutely killing it now, but quite a few are getting killed as well.
Hi, I love the current volatility. With the NQ jumping around 100 points within minutes it is hard to not make good money. Yes, you have to be careful to not take too large positions, too much risk. For example, if your regular clip size in slower times is 10 NQs, now it is maybe reasonable to cut down to 3 contracts. But you can still make much more than in slower times, the moves are much larger and you have action from opening till close. When the VIX is below 20, often I have to be patient and wait until there is really something to trade, and my total number of trades will just be around 10-20. These days, there is no waiting, you basically find a trade every minute all day long.
Absolutely love it!! The most profitable month ever!! Thanks Putin!! C'mon China, invade/take back Taiwan already so we can continue to have this volatility.
Agreed. The reduction in position size acts kinda like a natural hedge. Cuz the movement is so big so even with the scaled-back size, you still make more money than when there is no volatility but when you happen to lose, because the position size is smaller, you lose less cuz you are already entering at the bottom/top.
Very high volatility - no good - my brain CPU is not powerful enough to handle it - the charts and trading platforms will freeze making trading impossible medium volatility - good low volatility - no good - you can hardly earn $$$ from it
I prefer for slower markets overall but you have to love the rush of full panic mode where every headline spits out an overreaction. Being older it's hard to maintain the focus required all day every day for weeks on end. The physical drains start to add up.
Days like yesterday were a bit much for me personally. The SP moved more than 75 points in each direction several times back and forth. Volatility is better for me, but the swings are getting pretty steep hour to hour. I think it is unique to everyone and their strategy...some of you guys are killing it I'm sure.
I want high volatility when I am already in a trade position. Not before. Why would anyone want to pay high prices? Low volatility is where you get better price fills and able to enter trades at fair prices.