Today I traded like a total piker, I am not going to blame increased volatility, though must admit that the spikier the price action becomes the more difficult it is to stay with a trade. What didn't happen today, crikey that is a good question that I have asked myself when reviewing today's chart with a relaxed mindset afterwards.
Yesterday it was kind of obvious to expect higher than normal volatility and I made a decision to stay away during the RTH, although I did come back in the afternoon when the smoke has settled and made some nice gains. Today I made a judgmental error of going in straight of the bell, I forgot that today is day number 2 after the critical FED's intervention and that we could be in for more panic selling. In the end of the day a 0.75% cut does confirm that there are problems with the economy, sometimes it helps to use common sense in this game.
Basically what happened is a classic "trend day kill all counter trend set-ups", due to purservience and belief in method used I still managed not to lose that much, but it was a heck of a mental challenge more than anything else. Like Mark said it becomes more stressful and in my case stress was to do with my belief being tested upon continuous losses.
So, do I like increased volatility? Yes, when I am on the right side and No when I am not
I will add one more thing which I found to help during days like today, which relates to countertrend trading mainly and of course mainly to me
When price runs away like a runaway train it IS better to wait it out and get back to the screen when the smoke settles nearer to lunch time or near the end of it.
Some random thoughts here.
