Around 4pm UTC a sudden huge volatility happened. Is there a reason for it? Would want to take note if there is an important event i should know of. I checked economic calendar n ntg important today. Thank you
Damn lost me happy profits this week. But its my fault for layering too much
Edit : Well this could be the answer: Powell spooked the market with the risk of the latest variant of thr covid-19. Investors of Mordena? is pulling out due to the risk that the vaccines are said not to be effective.
So now my new question is should begginer traders like me still continue to trade as normal or should we wait till the market settles?
Trading news can be quite risky for beginners due to the volatility, without proper precaution can easily lead to a huge loss. Higher volatility presents a higher opportunity to make profit so if it up to you if you want to accept higher risk (i would suggest reading more on how to manage your fund and set proper stop loss to minimise your losses). Good luck
I am a trend follower trading off D1. I have been out of the market since the big Friday moves but aim to start feeding entry orders into pairs with consistent trends today.
Yes. New traders start with a false assumption - that the way to avoid risk is to trade very short-term within the day. This leads to the (rational) conclusion that the way to make money within such a limited time is to jump in to reversals.
New traders are usually time-rich and cash-poor, and facing a financial problem, so the intra-day trading decision matches their lives and ambitions pretty well. In practice, they are brand new drivers in Toyota Yaris’s and they are backing out of their garage onto the Monaco Formula One circuit.
Scalping and day trading does not mean trading every session or even every day. You still need to identify the higher timeframe trends. Do a top down analysis and trade with the trend. Very short term trading is only risky, if you do not know how to trade. That said…you can always trade on demo to practice your skills or just trade with very small sizes. For example: 0.01 per trade and only 3 trades a week.
During this time swing trading is riskier, as sudden big moves can happen in Dec/Jan. Long term trading is a different story though. Trade safe.
But in practice, most new traders reading this thread who have only put on a handful of trades or none so far will jump into the intra-day game without training, without experience and without demo-trading and without even a strategy. They will wipe out before they understand why they might wipe out.
What you say accounts for the 5% of new traders who don’t wipe out in Year 1. But for the other 95% you’re being unrealistic.
That is true. I understand what you mean, but jumping into the market without proper training or experience is definitely a no. However I can understand they want live experience. Then it is better to short-term trade now as that is also what most of the profitable ones are doing ( at least in my experience and from my knowledge ). Of course risk management and keeping a hard limit on your trades as a beginner is a must.
Being a beginner does not mean you can do a riskier form of trading this season and learn later what not to do. If you have no basis to trade on, then you should not even be in the markets. That is a hard fact. If you can not control yourself, then that is already a bad start. Something that a beginner must know!
I think the best we can agree on is that all trading has risk, and greater competence reduces it.
Again, what you say is from experience and has logic behind it but it crashes into real life and the real world and real people. Its not justifiable to label long-term trading as high risk when the failure rate in short-term trading is at least 95%. The high risk label will imply in the minds of new traders - though you’re carefully not saying it - that short-term trading is low risk. It very definitely is not low risk for new traders.
I am not labeling long term as high risk for this season at all. Just swing trading. There is a clear difference between these two. Also many do fail, but there is a good reason for it. You and I will not come to an agreement on this point. New traders can experience for themselves which is true.
We can agree on that new traders need a lot of practice first yes.