Strategies for falling price action ...

[eves_banished_children]

Traders (most) make money trading price action i.e. the instruments price moves 0.5% and they either buy/sell, or sell/buy to take advantage of the movement.

Disregarding chasing dividends, interest, etc ... what strategies exist to take advantage of a LACK of price movement.

There's selling naked options to take advantage of a quieting of the price action in an instrument (and then covering).

Trading the VIX ?

Others ?

If a time traveler came back from the future and told you that tomorrow AAPL was going to trade at one price the entire day within a 0.0001% range .. how would you take advantage of that information ?

 

[fordewind]

Questions start with ''if'' are endless.

 

[eves_banished_children]

Questions start with ''if'' are endless.

I'm actually looking for helpful information about strategies people use to trade decreasing volatility (in the sense of fluctuations in price) in instruments.

Thanks for understanding.

 

[wrbtrader]

Traders (most) make money trading price action i.e. the instruments price moves 0.5% and they either buy/sell, or sell/buy to take advantage of the movement.

Disregarding chasing dividends, interest, etc ... what strategies exist to take advantage of a LACK of price movement.

There's selling naked options to take advantage of a quieting of the price action in an instrument (and then covering).

Trading the VIX ?

Others ?

If a time traveler came back from the future and told you that tomorrow AAPL was going to trade at one price the entire day within a 0.0001% range .. how would you take advantage of that information ?

In situations like that involving trying to take advantage of a lack of price movement...

You can't.

In contrast, you can be diversified and then trade other products that are not lacking in price movement. In fact, from a business point of view...if your trading is not doing well...you should be diversified and have another source of income until market conditions favors your trading.

I know diversification is a very difficult concept for many but its a must. Its like getting a life insurance policy or disability insurance to protect your family just in case the worst happens to you.

Young people rarely consider diversification...its usually something we start thinking about or taking serious when we start a family or reach our 40's. Its something that we as traders must think about...take serious...take action instead of getting tunnel vision about price action that lacks price movement as in no trade opportunities.

wrbtrader

 

[fordewind]

I'm actually looking for helpful information about strategies people use to trade decreasing volatility (in the sense of fluctuations in price) in instruments.

Thanks for understanding.

You`ll never predict volatility,EVER!No one else, since the inception of trading was ever able to.God would never do it!If you could only understand this.

 

[eves_banished_children]

You`ll never predict volatility,EVER!No one else, since the inception of trading was ever able to.God would never do it!If you could only understand this.

I'm to be nice.

I'm not trying to predict volatility genius ... I'm asking how to take advantage of decreasing volatility.

If you don't know .. why do you keep posting irrelevant crap on my thread ?

 

[fordewind]

I'm to be nice.

I'm not trying to predict volatility genius ... I'm asking how to take advantage of decreasing volatility.

If you don't know .. why do you keep posting irrelevant crap on my thread ?

Just to understand that another bum goes on ignore

 

[eves_banished_children]

Just to understand that another bum goes on ignore

Thank you for putting me on ignore .. I wish you had done that before responding to the thread.

 

[eves_banished_children]

In situations like that involving trying to take advantage of a lack of price movement...

You can't.

In contrast, you can be diversified and then trade other products that are not lacking in price movement. In fact, from a business point of view...if your trading is not doing well...you should be diversified and have another source of income until market conditions favors your trading.

I know diversification is a very difficult concept for many but its a must. Its like getting a life insurance policy or disability insurance to protect your family just in case the worst happens to you.

Young people rarely consider diversification...its usually something we start thinking about or taking serious when we start a family or reach our 40's. Its something that we as traders must think about...take serious...take action instead of getting tunnel vision about price action that lacks price movement as in no trade opportunities.

wrbtrader

Thanks for the response wrbtrader.

I'm just going to do some research myself. It shouldn't take long to algo to find decreasing price action and then compare that to instruments that are rising in price in correlation (I'm guessing option premiums are the only thing that will rise, but maybe some VIX related ETF's too)

 

[stepandfetchit]

Curious why your thread title states "falling price action", but your post references "a LACK of price movement"