What is a good way to take advantage of volatility

N

never lose ever

Very simple. I'm not looking for any long term investing advice or formula's just very simply how can I make the most out of the volatility in a stock. How can I find entry point's and exit points?


I know it's a basic questions but still
 
Quote from never lose ever:

Very simple. I'm not looking for any long term investing advice or formula's just very simply how can I make the most out of the volatility in a stock.

The answer is simple. If the stock is going up, go long. If the it's dropping, go short.

How can I find entry point's and exit points?

Now that's the $64 question :)
More...
 
As long as you're trading momentum and you're looking at the intraday or multi day swings, any increase in volatility will mean larger distances between the natural support and resistance zones in the market. So you don't need to do anything other than make sure you're trading. The results will be reflected in greater profitability if you're picking the market right.
 
sell options

Just sell out-of-the-money calls and puts, sit back and collect premiums, you will be on the beach in no time.

5yr
 
Quote from never lose ever:
----Very simple.
----looking for a formula....
----volatility in a stock.
----How can I find entry point's and exit points?
More...
Be cognizant of the "sigma" for the stock, it's average daily expected range for "fade trades". :cool:
 
Quote from never lose ever:

Very simple. I'm not looking for any long term investing advice or formula's just very simply how can I make the most out of the volatility in a stock. How can I find entry point's and exit points?


I know it's a basic questions but still
More...
Find a time frame where the price is trending. Then, if your trading skills allow, trade it ... :)
 
Quote from 5yrtrader:

sell options

Just sell out-of-the-money calls and puts, sit back and collect premiums, you will be on the beach in no time.

5yr
More...
I disagree ... that's bad advice ... :)
 
Quote from never lose ever:

Very simple. I'm not looking for any long term investing advice or formula's just very simply how can I make the most out of the volatility in a stock. How can I find entry point's and exit points?


I know it's a basic questions but still
More...

It's not rocket science. LEARN a stock. Look at it's intra-day typical range. Note the range. Then trade it. So many posters here, not necessarily the OP, think trading is some monumental challenge. It's not. Start small with size; develop confidence. Then up your size. For example, I trade certain stocks every day; ATML, SANM, PMCS as well as SDS when I'm bearish. If you truly learn a stock, and know it you'll know when to enter (long or short) and when to exit. As long as you capture a small part of the intra-day range you'll be profitable. I've done this for 15 years. Don't make it more difficult than it is.
 
How can I find entry point's and exit points?

Now that's the $64 question
------------------------------------

Quote from never lose ever:

and do you have the answer?
More...
Can I tell you here and now where the entry and exits are? Hardly. But if you've traded intraday for awhile, you know there's a feel for a stock in play. As it moves on volume (momentum), you take a position, possibly adding more as it moves more in your favor. And at all times, you stop loss it.
 
You must log in or register to reply here.
Back
Top