📈 Outsized Volatility
This is a painpoint for traders right now...
Market Volatility
We have been seeing extreme volatility in the market of late.
This makes it extremely important for you to stick to your trading plan, whatever that may be.
If you are a swing trader, you must commit to your swings. If you are a day trader, you need to take wins when you have them.
A good example of this is UPST.
Today we had an 18% swing over the course of the day - this is staggering.
Looking at the image above, since the election in November, the average true range (the expected change in price for a given day that we expect to see) has doubled.
This obviously makes life very difficult for swing traders, who may see the volatility throughout the day and close their positions - both for wins and losses.
The best advice that I can give is once again to stick to your plan. You should have pre-defined stops and target levels in mind before you put on any trade.
Utilize that and ensure that you actually treat your swing trades as swings and day trades as day trades.
The market is very difficult right now because of this volatility. I walk through strategies to take advantage of the volatility in this video: