What are implications of a fast moving market? Over last two months, market has entered a period of high volatility. If this excitement does not subside, the following will happen when sell signals appear.
1. System will flash sell signal for shortterm traders. The high volatility represents swing-trading potential in both directions.
2. For longterm traders system will suggest wait for clarity after volatility subsides, before reversing march positions.
According to my research, over longterm, position-trading makes the most profits. But shortterm volatility could mean losing 50% of paper profits and still sit tight. Its hard, many would exit on 1 instead of 2.
Not suggesting practising one method will make someone more successful than using the other method. It all boils down to individual personality and attitude towards market.
- RallyArtist
- Lured into ecstasy of gold I begin to learn. To profit from madness of crowds.
System Z's View
