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Trading tips in Volatility...Just go throgh it

Wednesday, September 9, 2009 | Labels: , | |

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Trading tips in Volatility..Just go through it

Volatility in stock market is essential factor. Trader can not be trade without volatility. As trader you was watching so many choppy session. Choppy session tie trader to chair. They merely do trading for gain profit.

Trader wants volatility in market and stock. No one wants price stick to certain point whole day. Even though in choppy session there is some change is price, but we cant say it volatile. Volatility means change in price with more than your expectation. This volatility fluctuate price, which comes as chance to trade in high and low of every tide. Very rash volatility is dangerous for trading but medium and bearable range with medium time interval is good for trading.

Once you can judge high and lows of tide, then you can predict the next high and lows. So you can take decision to buy at low and sell it high or you can sell on high and buy at low. This will required patience and proper timing. In high volatility you can not judge or make right timing. One can do trade in medium range volatility once he understand pattern of ranges.

So most of time volatility make heaven to trader. If you miss right timing then you can broke your head with jump on high. Then condition may go against you. In that condition you must have to use stop-loss, else every tide sunk you money. Timing is very key factor while you trade in volatility.

If you control greed and you fear in volatility, you should make one specific trading system for you. Every time think for trading in volatility then must understand interval of change in price. If you can drive with this speed of price then try to trade else sit on chair. Wait for favorable condition for you. Don't try to gamble it will broke your trading system and style. This is broke your discipline for trading.

We always read that discipline is very important. I want to again prompt that without discipline you should loose money in market. There is chance to some time you should win, but not always.

WORD OF CAUTION

  • Timing is very important. If position goes against you use stop-loss
  • .
  • Discipline must be followed.
  • Trade with small volume as volatility increase. Try to keep positon small.
  • Always try make one trade at time. Over trading is injurious to your wealth.


Then next time you do not found fear or phobia for volatility. Now you should make trained to do trade in volatility.

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