What do you do when volatility becomes extreme?

What do you do when volatility becomes extreme?

volatilityYou reduce position size. It is entirely within your power to reduce the volatility of your positions and trading account to levels that you can manage. Get smaller. If that doesn’t do it, get smaller again. You can’t control market volatility, but you must control your own volatility, and the right tool for the job is position sizing.

One of the things I have found myself saying most often to people these past few days is: markets are emotional, but you cannot be. Manage your emotions. Manage yourself, and everything else will follow.

Adam H Grimes

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites