1. Money

Increase in Market Volatility

By February 26, 2013

Follow me on:

The commodity markets have become more volatile in the last couple weeks and that might have some traders rethinking where they should take profits on their trades.

It is usually best to continue using the same strategy for taking profits.  Most traders use a dollar amount as their objective or a point of support or resistance to exit a trade.

I like to stick with my regular targets, but I will adjust them if the markets are getting very volatile.  Sometimes I will still exit at the same dollar amount or target, but I will let a contract or two run.

The main thing to consider is that you don't want to constantly change your trading style or objectives.  This will often cause confusion and take you out of your comfort level.  The markets will continue to rotate from bullish to bearish and volatile to non-volatile.  Constantly chasing the market pulse often causes more trouble than it is worth.


Comments are closed for this post.
Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.