Stay calm and manage risk!

With all the volatility that we had recently, a lot of people get the feeling that they are missing out on some great opportunities,just because the swings in the markets are so bif. The problem with that is, you just don’t know where the next big move is going. As long as you are just guessing,you might as well go to the casino.

***

Before i was a trader i thought that the times of high volatility are the times you make most of your money. While it is possible to make a lot of money in those times, your chances of loosing a lot of money are also increasing.It only makes sense to make a big commitment when the odds are in your favour. You have to pick your spots. That is why experienced traders mostly stay out of the market at those times,because they focus on risk management.

Advertisements

About Schwarzdaytrades

I am a full time day trader. I like to share my opinion about stocks and the psychology of trading.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s