Avoid volatility

Tuesday, August 6, 2019

Avoiding volatility and bearish phases is key to making money swing trading .



Tools like Market Breadth allow you to do that. Market breadth started deteriorating few weeks ago. As you can see there were more breakdowns than breakouts. That was the signal to be defensive and change your tactics.

If you did not take notice of that then you will get caught in the accelerated selling. By the time you become defensive it is too late in that case.

Breadth tells you number of stocks participating in a move and it is market derived information. It will help you avoid volatile phases and protect your profits.

Lot of traders lose lot of money in such phases as they are slow to react to market conditions changes.

If you want to make millions trading learn the basics of market breadth and develop your own market timing tools. I developed Market Monitor 20 years ago after getting caught in such selling phases and losing money. Now most of the time MM gives signals ahead of such periods.


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