Home > Lessons from the trading floor > understanding day trading volatility

understanding day trading volatility

Do you truly understand volatility and how it should affect your day trading decisions? Do you have plans in place for when the market or your stocks are  trending versus not trending?

If your stocks are trending do you have a method of deterimining if you should be holding on to a core position for a bigger move or if you should be booking profits into momentum?

To become a consistent trader you must understand how and when to use leverage. In order to use leverage successfully you must understand that all price movement is not identical.

You must gain enough experience to learn that all breakouts or breakdowns are not alike.  All bull flags or bear flags are not alike. What do I mean by “not alike?”

The scenario LEADING UP TO THE SIGNAL is more important then the signal itself. The price action leading up to the signal is more important than the signal to enter. The volatility within that price action must be consistent for you to understand when to increase or decrease your expectation for follow through and your leverage.

Keystone Trading Group is currently looking for new talent to train and mentor in our winning system If you think you have what it takes to join our team let us know. To find out more click here.

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