The volatile period at might have confused or shaken out many market participants seeking clear directionality. Natural Gas Futures (NG) – Daily Chart – March 2021 to February 2022 (source: Tradingview) Take a look at the Natural Gas Futures below. What’s even trickier is that volatility can occur in both trending and non-trending markets.
BEST NEWSLETTERS VOLATILITY TRADING HOW TO
Traders or investors who are not accustomed to volatility can easily get shaken out of the markets because they don’t know where prices are going (in general), nor do they know how to measure (and guesstimate) how far prices might go before reversing or continuing. Navigate the map to get a better sense of where price might hit a speed bump, target, or reversal. If you can’t see the critical areas where bulls and bears converge and clash, then you are setting yourself up for either a favorable or unfavorable surprise. It matched a critical support level established in June 2021.ĭow Futures (YM) – Weekly Chart – May 2021 to February 2022 (source: Tradingview) How’d they predict it?ĭow Futures (YM) – 5-Minute Chart – Janu(source: Tradingview) Most traders who kept their eye on the big technical picture likely jumped in at the low. If you were day trading the YM on Januwithout looking at the larger time frame, you were probably surprised when the YM suddenly stopped and reversed. One – Know Your Critical Levels of Support and Resistance That said, trading volatile markets is highly risky! These pointers aim to help you not get wiped out, tripped up, or just lost amid the turbulence of asset prices. This blog is intended for traders attempting to trade potentially volatile markets. Still, you can’t afford to be myopic especially, in a market that’s loaded with many potential economic traps and landmines.įive Pointers for Navigating a Volatile Market
But most futures day traders like to stay on the near-term end of things. Longer-term trend traders get a pass on this. Whether you’re a day trader or swing trader, you’re engaging a small portion of a larger map. However, be sure to keep one eye fixed on the horizon, especially considering the big storm that appears to be heading our way. The big difference here is that investors tend to do best by focusing on “time in the market.” Traders, on the other hand, are always trying to “time the market.” As a short-term trader, that’s your job. This is not to say that traders are not investors and vice versa, but depending on which “market hat” you decide to don, be sure you’re looking at volatility the right way so as to make sure you’re adequately dressed for the right party. Traders, in contrast, sometimes welcome it. Volatility Presents Both Opportunity and Risk Volatility, or even extreme volatility, may be the only certain thing we can expect. If you follow mainstream financial media, you might notice many conflicting forecasts among experts whose distinct strategies-bullish and bearish, short-term and long-term-may converge or collide in the market. Global GDP downgrades, and domestic and geopolitical risks-check, check, and check. Let’s take a look at our ingredient list. Today’s market is like a cauldron of blisteringly hot and toxic economic soup.
0 kommentar(er)
