Great to hear, maybe she can give you a bridge loan so you can move out of her attic...% trader? Pppplease!
Amazing volatility - Will it last?
- Thread starter Laissez Faire
- Start date
That is not what she said.....
you trade your points, I'll trade my pecentage moves. They did tell you points are relative to value didn't they? So a ten point move on 100 is not the same as a ten point move on 1000. Go to ebay and look for a vintage calculator and spend a weekend trying to learn how to use it.
Will do...enjoy your bingo nite after your 4:30 Applebee's reservation.
Not so sure it is volatility as we all know it. Looks more like (especially today) CBs trying in pure desperation to squeeze at the lower points every time is swoons down and some large bank trading desks following the CBs for a few quick points in desperate hope of starting a rally. Reason CBs and large banks trading so desperately is that there are strong rumors that a European bank (maybe a few) (is) are blowing up, default swaps flagging red, bond market screaming collateral damage and central banks circling the wagons here. Tonight in Asia (japan) will be very touch and go...Abe may offer more pure panic NIRP and make things much much worse and I guess in Europe they will stay as quiet as they can on this bank...
negative rates = people pulling deposits in large number and there is negative rates in both europe and japan
Fed is very limited here in what they can do and the large US banks are just hunkering down hoping it doesn't spread here
watch for the denials...they are very telling
negative rates = people pulling deposits in large number and there is negative rates in both europe and japan
Fed is very limited here in what they can do and the large US banks are just hunkering down hoping it doesn't spread here
watch for the denials...they are very telling
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10 points move aren't the same.
But the guy who know the underlyings,
Know what it represents. % is fine, points too.
You can talk in point with someone knowledgeable.
Managers talk in % because they talk to non practitioners.
So you ain't superior, especially with your calculator.
You should use mental math to open your mind.
It's okay to translate points in percents,
But the other way isn't since ...
You don't know the base.
I mean, the guy who express himself in points,
Will understand values expressed in percentage.
But you won't understand people talking in points.
You're disadvantaged, You don't talk their language,
But some do as well as they talk / understand yours.
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whatever, many of us longterm bulls have been wating for the "Health Restoring" 30% correction for a long time. 10 points a day doesn't mean much to us. If you are a bracket trader all ten point volatility means is you have to widen your stop or you will be stopped out of your old stop before you even realize you got filled. So it's all relative.
Don't mean to ruin the party atmosphere, but how does volatility translate into free money? Volatility can serve as a double-edged sword. If you don't know what you're doing, you could end up seriously hurting yourself.
Well, let's assume that you know what you're doing then. People shouldn't be trading if they don't know what they're doing.
Regardless of this, I'll say it's easier to trade high volatility than low volatility, certainly when the volatility gives clear and nice swings like recent days. I will illustrate with an example:
Low volatility and tight ranges - A trader takes two 3 point stop-losses in a row and needs 6 points on his next trade just to break even (not counting cost of trading). Very hard to accomplish when the market is doing 10 point DAILY ranges with smaller swings during the day.
High volatility and wide ranges - A trader takes two 3 point stops in a row and rides the next big swing for 15-20 points. Hell, perhaps he's lucky and rides another 10-20 point swing among the wide variety of swings on any given day.
Another grand day in the markets so far: 23 points up and then 21 points down and the day is still young.
The funny thing is that the charts are all looking very normal to me and not any different than a lower volatility environment. Only by inspection or other ways of keeping track one discovers that what appears to be 'normal' swings indeed are 20+ point swings with 5-6 point 'shallow' retracements. Very nice.
The funny thing is that the charts are all looking very normal to me and not any different than a lower volatility environment. Only by inspection or other ways of keeping track one discovers that what appears to be 'normal' swings indeed are 20+ point swings with 5-6 point 'shallow' retracements. Very nice.