The current market volatility is like that we have never experienced. Everyone acknowledges the fact that it is extremely difficult trading this volatile market. Expectations should not be as high, profits should be taken off the table quicker and stop-losses should not be used. That’s right, you heard correctly — stop-losses should not be used. The reason I believe this is because with market volatility at an all-time high, tight stop-losses will get hit much quicker resulting in far more losing trades. Rather, it might be wise (or un-wise for that matter) to practice the following bullet points until market volatility subsides.
Obviously, in normal trading conditions, some of the bullet points above would be considered reckless while some would be considered extremely conservative. In this market, if you are not 100% comfortable with the above — I would suggest sitting on the sidelines until volatility returns to somewhat normal levels.
If you are considering our Trade Alerts service, there are still trading opportunties available, An analogy I like to use is rather than looking for a home-run each time — consider our service to be grinding out runs hitting singles only.
