New guys, now is not the time

Hi Dustin,

Do you typically trade breakouts, pullbacks or reversals in high volatility?

thanks,

Walt

 

Perhaps it's time to look outside your square, low Vix = opportunity.

Best Regards

Johno

 

volatility is my strategy as well. i'v only been trading for about 6 months and it seems to me that if volatility is not in the market; (a lot like the volume right after the christmas break) new strategies are going to have to be formed if the low volume or volatility is going to be the new norm.

i'm happy to hear so many say that this market is not as good as previous years passed. the only thing thats really going to make a big difference to me are the new leverage requirements.

 

I thought the 1st 2 days of this week were OKAY, last 3 days a bit tough tho, but maybe that's just me

 

actually. it was the opposite for me. i didnt open any positions mon. and tues. was about the same, but wed. thurs. and fri. i opened and closed more than a few positions with profits

 

Would anyone care to weigh-in on this question...?

 

Sorry, missed you the first time around. I prefer RTM trading in high volatility markets.

 

thanks for the reply, Dustin...

It seems that most traders prefer RTM in high volatility conditions; however, when the market is parabolic, like today, it seems that the intraday momentum was simply too strong to create any reversal opportunity.

Although I'm naturally a RTM trader, strong downward trends & increasing volatility seem to reflect that going with the intraday trend/momentum is the best bet.

What am I missing?...

Walt

 

You're probably looking at indecies and not individual stocks. In a strong market sell off and rising vix, stocks overshoot and bounce all the time. You don't need much time to catch a bounce and exit before a fall resumes. There were plenty of these scenarios yesterday.

You keep asking the same questions in various threads and getting the same answers.

 

Ok, I'm not grasping this much either . . . I've been moving from the NQ/YM to stocks over the last month and this isn't something that has been apparent to me.

Lescor/Dustin, are you saying that you simply prefer RTM in these cases . . . or would you go as far as to say it's a much better approach?

High volatilty says to me intuitively that with-trend movements have the biggest bang for the buck where when volatility slows, pushes in one direction or another aren't sustained so RTM is a better play.

Is this purely preference . . . or are there other aspects that form your beliefs?

Thanks.

JS