Seriously, whats a Normal Market?

Discussion in 'Trading' started by antincedo, Oct 14, 2008.

  1. ok, well ive been trading with success but am still pretty new... so i'm wondering, well i dont mind this market but what am i to expect in a 'normal' market? i imagine less volatility and such but does that mean it's going to be harder for me to make $$$? someone please explain
  2. btud



    A normal market is when the Dow Jones hovers a range of 1000 points in a few months, rather than a day
  3. Correct, so you need to develop strategies for trending and trendless markets alike. There are always opportunities to make money from the market.
  4. im curious if its going to be harder to make more money? 1% a day reasonable during a 'normal' market
  5. Unless we know what setups you are looking for and trading no one can anticipate how varying market conditions will affect your trading.
  6. well would there still be big moves on a daily basis? i just trade the moves i know that sounds vague but im wondering if there will still be such opportunity. anywhere i can find old charts of the index etfs?
  7. NoDoji


    There are stocks that always have relatively large moves in any market - generally higher priced and heavily traded stocks such as AAPL, MA, CME, BIDU, FSLR, ENER, ISRG, POT.

    I was amused to see BRK.A (today's range $117,000-$122,000) come across the wire with a market-on-close buy imbalance this afternoon. I mean it's not like it's trading at 2-year lows, you know...
  8. i would imagine some individual stocks will always have those sort of ranges but what about the indices? what did most of the daily moves look like a couple years ago when there wasnt all this turmoil? were they lame?

    like yesterday for example... Minus the gap up and the huge rally at the end of the day...

    it was a pretty lame day.. slow moving, close range, i made a few trades buying it and selling it at the same price level back and fourth. but overall it was kind of gay.

    is that normal? (excluding the gap and the big move at the end of the day, of course)
  9. fseitun


    When the Vix drops back to 10-15, the Dow will resume its 100 pt daily range.

    I've seen and traded many 60-70 pt range days, and although it's not pretty you can still make money if you are good.

    Of course, instead of having 50-100pt targets you must be happy with 10-20, but you can increase size due to the lower volatility.

    All in all, unless markets flatline and stop moving, there is always money to be made.
  10. yeah, i guess proper money management could compensate for the lack of big runs... its a little disappointing though as i've been enjoying the higher volatility.. how long do you think this will last?
    #10     Oct 14, 2008