What does "volatility" mean to you?

Discussion in 'Trading' started by 1a2b3cppp, Mar 23, 2011.

  1. Not necessarily looking for dictionary definitions, but rather what it means to you.
  2. wrbtrader


    Yeah, there's several definitions out there depending upon what you're doing with it or trading.

    My definition is a key change in supply/demand.

  3. bump you slackers!!!
  4. Volatility means opportunities to traders.
  5. Philosophically, it means uncertainty and fear.

    Mathematically, I'd define it as the amount of variance of the range of price.
  6. uncertainty or lack of liquidity or both.
  7. It means widening my stops and targets..
  8. Wouldn't that be the square of volatility?
  9. I love trading in that environment. Can't wait for markets to return to uncertainty and fear for an extended period of time again. Soooooo ready.
  10. spindr0


    There are all kinds of volatility... historical, implied, future, etc.

    But the really good stuff is when the general public hears bad news or reads their monthly statement and realizes that their 401K is turning into a 201K plan. Then they run for the door, blowing out everything, creating wonderful trading opportunities. It's even better when it spreads to Fool Service brokers and institutions. Love those panicked sellers!
    #10     Mar 27, 2011