Why You Can’t Trade in Low Volatility. How to Identify it and Have an Alternative Plan.
This is a universal lesson that I believe all traders need to bring into their trading plan. How you manage times when the market volatility is low and market price patterns are not offering the opportunities you are normally accustomed to when winning can make the difference between being profitable and being a break-even or losing trader. In this video Jason Stapleton offers some insights into how to identify low volatility and some alternative actions to take when conditions are not suitable for your trading style.
When volatility is low it can be very frustrating, you might be in a trade and the market meanders along and eventually takes out your stop. It feels like the market is not in your favor and deliberately against you, this can lead to stepping outside of your trading plan to “find a better way” or to revenge trade.
How do you deal with low volatility? Let us know in the comments below.