Volatility

In periods of higher volatility and shocks across the board, as in the last week, be prepared to alter your trading plan as a position taker.

Where once a constructive market under low-medium volatility allowed you to set defined price entries, and the usual patterns and trading synergies of a particular market held true, which in effect gave you your original edge, now to perform when volatility picks up and markets change, don’t be so cute on your entries and exits.

In effect, if it gets close and you want a position, pull the trigger, reduce size and get involved, and be prepared to reload.

The added volatility and your experience in the market should more than make up for any short term hits.

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