Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Becoming a Better Trader: Adjusting for Changes in Volatility

Becoming a Better Trader: Adjusting for Changes in Volatility

Paul Robinson, Strategist

Paul conducts webinars every Wednesday, Thursday, and Friday. For details and a full line-up of upcoming live events, please see the DailyFX Webinar Calendar.

In today’s webinar, we discussed volatility and adjusting expectations accordingly. Volatility is mean reverting and as such our trading should reflect this. If there is one certainty in markets is that volatility will rise and fall, over and over again.

With that said, when volatility spikes we need to understand it won’t last, and that if we have been benefiting from the expansion in volatility at some point it will end. How quickly a trader recognizes this will have a huge impact on trading results. After extended periods of low volatility we need to be on the watch-out for periods of increased volatility ahead. If you are a range/mean reversion trader this means you might be in for a surprise if you aren’t keeping an eye out for the inevitable expansion.

Today we discussed the dynamics of volatility and how to more quickly adapt to the changes in order to maximize those periods of trading which are most conducive to your methodology.

Trading Ideas and Guides

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES