Why some traders are bitching about the lack of volatility?

Discussion in 'Trading' started by Daal, Jan 18, 2010.

  1. Redneck

    Redneck


    Well let’s see...

    I am a dumbass – I’ve said so many times

    I do use a 5 min chart

    I do use an EMA

    I do lose

    I do dislike the fact that after the first couple of hours – most of my stocks have gone lethargic lately



    Damn – Ya got me :p


    RN
     
    #41     Jan 19, 2010
  2. jan has a narrow trading range in my opinion, not every day, i missed out on days that have wider trading ranges.

    I so miss last year.
     
    #42     Jan 20, 2010
  3. A non-leveraged long position can't lose more than 100%, so it's inherently less risky than a leveraged bet. Long 50% at VIX 80 is less risky than long 200% at VIX 20.

    There are liquidity constraints. Volatile environments have more reward per unit risk, and unique opportunities that aren't available in low volatility environments.

    Increasing size does not increase risk/reward ratios. And it is risk/reward ratios that determine returns for a given risk tolerance. Given that all strategies have an upper maximum return, due to risk of ruin, someone trading optimally cannot increase returns by increasing leverage.
     
    #43     Jan 21, 2010