Volatility, Stops, and Other Topics
February 13, 2009
Here are a few interesting posts from my blogging peers that you may find interesting.
Vix and More wrote Thinking About Volatility. It’s part of one of a set of posts and does a very good job of laying out the different ways to think about market volatility.
Along those same lines, Brett Steenbarger recently posted Think Like the Herd, But Don’t Follow the Herd. In it he discusses the combined states of volatility and trend, and how volatile non-trending markets like the current stock market can cause traders fits.
Trader Mike posted Tight Stops and Risk/Reward Ratios. In it he answers a reader question about where he places his stops, the impact of volatility, and the implications for the risk/reward positioning of his trades. Stops are a subject I have posted about here on many occassions, such as Close stops do not lower your risk, Where do I put my stops to avoid being taken out?, and Respecting Your Stops is Easier With Better Stops.
Building confidence was the subject of my recent Afraid to Trade? Build Your Trading Confidence post. The parallet subject of dealing with your fears is the focus of Conquer the Fears Lurking in the Dark Corners of Your Mind recently posted at Zen Habits.
Struggling with support & resistance and knowing what the key market levels are? Check out the Price Distribution Analysis methods I use.
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