why volatility makes the trades up and down?

[demeanor]

hi there !!

I lost many trades due to volatility and I know there is no market without volatility, but why is that many traders loose money in times of volatility instead of winning?

Loss on trades is of high percentage when compared to profit on trades during volatility...

could any body give us few genuine reasons for this?

 

[gooseman]

tight stops.

 

[Skill Leverage]

Back to the drawing board - many traders lose money during the quiet hours too. In fact, I can guarantee you that people are winning and losing at any given time in any market, regardless of the volatility. If you're losing money during high vol periods, it's because you're trading incorrectly; there's someone else at the other end cleaning up off your mistakes.

 

[A Dashing Blade]

You're equating "volatility" with "trending"

 

[nile_croc]

The best market isn't necessarily volatile, more like quiet and trending.

 

[demeanor]

yes true in quiet times also we loose the trades and win...but when its volatility, there is chance of loosing the trades more than winning. but thanx for the responses.

 

[Glenn]

hi there !!

I lost many trades due to volatility and I know there is no market without volatility, but why is that many traders loose money in times of volatility instead of winning?

Loss on trades is of high percentage when compared to profit on trades during volatility...

could any body give us few genuine reasons for this?

Many people dont reduce their size in volatile markets where there is more risk.

More risk ?
Example:- You wait for a pullback/low to go long. When the time comes, the market shoots off in the right direction. By the time you enter and are filled you are a long way from the low and therefore your risk is increased. Then there is a volatile pullback below your entry and you exit at a loss which is bigger than usual. If you had reduced your size this would not be the case.
Glenn

 

[Trader333]

Volatility is irrelevant if you cater for it with appropriate position size in my view.


Paul