Here is how I viewed trading a couple of years ago...

Overnight

Overnight


Here is how I view it today...


Here's how I foresee trading in the future, unless Trump shuts the fuck up with his trade war...

 
LOL!

As a trader, you should actually embrace the notion of a trade war. Volatility, so long as it is not so great/fast that you can't cope, is a good thing. Same signals, bigger moves, more profit opportunity.
 
Maybe. It really depends on the kind of volatility we'll see, and how predictable it will be. I still have nightmares about the CHF after the Swiss Bank unpegged it from the EUR.
 
mlawson71 said:
Maybe. It really depends on the kind of volatility we'll see, and how predictable it will be. I still have nightmares about the CHF after the Swiss Bank unpegged it from the EUR.
More...

Likely we cannot predict volatility change. And certainly can't predict a "black swan" event. Most changes in vol are not so "explosive" that we can't cope.

But every now and then, there is one. Don't know how we protect against such unless we're hedged all the time. That would be very expensive and kill returns... and may not even be as effective as we fear when such event comes along.
 
Scataphagos said:
Likely we cannot predict volatility change. And certainly can't predict a "black swan" event. Most changes in vol are not so "explosive" that we can't cope.

But every now and then, there is one. Don't know how we protect against such unless we're hedged all the time. That would be very expensive and kill returns... and may not even be as effective as we fear when such event comes along.
More...

I rarely hedge but I do try to place as Stop Losses, exactly because I fear such events. And because I can't observe the chart 24/7, obviously.
 
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