Aren't you the guy that just bought every dip in YM? Did you seriously consider yourself to be a trader with that strategy? This is a serious question. Can you honestly say that you were a trader?
Trading sucks, dont waste your time
- Thread starter myminitrading
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Aren't you the guy that just bought every dip in YM? Did you seriously consider yourself to be a trader with that strategy? This is a serious question. Can you honestly say that you were a trader?
You're kidding right? The volatility of late has been even below the historic average. There's no way you've been trading for 7 years if this type of volatility is just now causing you pain. Did you trade around Sept 11? Spring 2000?
minibraintrading had a nervous breakdown!
Question to all experienced traders:
What was volatility like back in 2000-2002?
And do you guys think volatility will ever get back to those levels?
I think that today there are so many participants in the emini futures market that liquidity kind of prevents that type of volatility from showing up again...
If you look at ES daily range and average daily volume back in 2000-2002 and compare it with today's, you'll see that while the range has dramatically decreased volume has dramatically increased...
Furthermore, all automated programs and the hedge funds boom will make it even harder for markets to be highly volatile again.
Anyone agrees with the above? I would like to hear different opinions.
What was volatility like back in 2000-2002?
And do you guys think volatility will ever get back to those levels?
I think that today there are so many participants in the emini futures market that liquidity kind of prevents that type of volatility from showing up again...
If you look at ES daily range and average daily volume back in 2000-2002 and compare it with today's, you'll see that while the range has dramatically decreased volume has dramatically increased...
Furthermore, all automated programs and the hedge funds boom will make it even harder for markets to be highly volatile again.
Anyone agrees with the above? I would like to hear different opinions.
Part of the reason why we don't see huge daily swings these days are IMO a) A four year bull market giving investors a sense of peace that things will keep trucking upwards eventually... forever. No need to sell. b) Wider use of defensive derivatives that help cushioning losses from quick downward moves in the markets.
Periods of low volatility have been here before and didn't prevent higher volatility to come back: http://www.cbot.com/cbot/pub/page/0,3181,1650,00.html. Compare 2003-2007 with 1992-1996. Once we top out .. sooner or later .. we will be back to normal.