As we have already talked in the past, our biggest enemн in the market is volatility. It can come out of nowhere and spoil our trading plans for a long time. And all of that with no possibility for us to control things as well as reverse it into a better situation for ourselves. Who would want to deal with something like that?
But there are always things to be better with volatility and not fall victim towards it. How do we do it?
1. Don’t enter a volatile market.
2. Base your strategy around fundamental analysis.
3. Never hesitate to use trading signals.
4. Do not put all hope in one trade.
5. Do not obsess.
6. Never-ever doubt yourself.
1. Don’t enter a volatile market.
Of course there is always a possibility to earn in the market. And even in the super-volatile market there is a possibility to earn a few pips which in the long run are going to add up and turn into a solid earning. But not everyone has the ability to really see those pips in between jumping up and down assets. Most of us see risks. And the more ups and downs we see, the less it is likely that we are going to be attracted to the trade.
So, if you are not sure just do not enter a trade. It is better to wait the volatility out than to lose points with it.
2. Base your strategy around fundamental analysis.
As we know every market can display volatility. Stocks, commodities, currencies and others. There are no assets that are not going into the volatile states every once in a while. So, it is better to be prepared for it before it ever happens. And it is not going to matter where you go and which security you turn to. And how can we possibly navigate a situation like that? Only by basing our trading strategy around fundamental analysis of the market where you can be sure that deep research of the market is going to help you escape huge losses.
3. Never hesitate to use trading signals.
Of course conducting fundamental analysis all by yourself is very difficult. That is why it is better to rely on machinery to do that so that all your work is going to be narrowed down to enjoying the results of the trades. Trading signals is THE thing to use in the volatile market.
Your trading signals are going to minimize the possibility of losses and minimize them for the long run.
4. Do not put all hope in one trade.
This is especially important in any market conditions. You are not going to reach trading heights by putting all of the hopes into the only trade. What if this very asset is going volatile? Well, that is where you need to protect yourself from it by diversifying your trades and looking into other options.
5. Do not obsess.
Obsessing over the possible market volatility is not going to do you any good. Not by any account. Changes in the price are inevitable in any case. And you need to be cold blooded when they really come. If you are going to surround yourself with too much info from the markets sooner or later you are going to hit panic mode and that is the last thing you need. Calm down approach is the best thing in this scenario.
6. Never-ever doubt yourself.
Never think that you are not capable to battle volatility. You are more than capable. The main thing here is your desire to do so. Well, you can’t battle volatility per-se, but you can always take advantage of it by shorting. Although that takes skill and patience, never think that it is not for you.
