
Volatility and the Fish
megajorko Posted 17 Sep. in #Ecb #Federal Reserve #Volatility #Central Banks #Leverage #Money Management #AccountSimilar in trading are the instruments (indicators, charts and others).
The main object in the fishing is the fish. For me the main object in the trading is the volatility. Why? Because like for the fish you have to wait whole day (some times weeks or even moths) just for several seconds to few minutes of huge market movements The problem with the volatility is that is can be very hard to recognize it correctly and like in the fishing you can catch a small fish instead of the big one. In trading you can make two things either take the profit before the huge movement in your direction or it can be false volatility with several rangy movements which must be very carefully avoided.
The problem is who is the fish, you or the market. The market is setting several baits so that you stay away when the real movement comes. If you wan…