Trade bigger to offset compressed volatility

Discussion in 'Trading' started by a529612, Jan 23, 2007.

  1. Is anyone doing it these days since I haven't seen a big move (200+ pts) in a very long time.
     
  2. If your trade risk is declining on a points per positions basis then there's certainly no reason not to trade larger size to basically take the same amount of net risk.

    Got to say, though, that upon first reading your question I couldn't help but flash back to one of the forex trader interviews in The New Market Wizards. I'm forgetting who it was, but he talked about how one time the market was in a really narrow trading environment and he kept trading bigger and bigger to offset. Then the market made a break and he was on the wrong side. :eek:
     
  3. Kind of like the entire trading universe right now.