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High Volatility

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Not applicable
Having had my fingers burnt for the past days, I realise it is best for me to steer clear when the market is highly volatile (actually read Simon mention that he was staying away for a while). How do you know that the markets have entered a volatile period (indicators, measurements etc). Just trying to avoid paying school fees for such expensive lessons lol.
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6 REPLIES 6
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Funny that, after all myschool fees i am making money in a volatile market. Worst thing with leveraged goods is sideways movement and little volatility...to each their own I guess ;-) So my answer depends on what you trading (I have too assume trading as investors dont really care to much with a few % changes in the long term). Also you eventually start developing a gut for what the market is going to do. Yesterday I made a killing on IMP in both long and short positions. This morning I closed the short out again and went long. I have made about 26% in the last 2 days.
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Russ
Super Contributor
CPS,what instruments are you using?
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Ninja
Super Contributor
CPS, IMP had a trading range of R5.50 yesterday....after comms in and out how did you make so much cash? (R1.60 comms?)Did you hit your timing spot on and are you trading through OST as they don't offer intra day trading charts?
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Sorry, That did not come out clearly. IMP was only about 10% of that. I used AMS, and KO's as well.
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Not applicable
Funny indeed. I guess its a matter of time CPS.
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Russ, sorry just saw your message. I use warrants, CFD and Then also international markets I trade the indexes. Profits I roll into a longer term investment portfolio. I only ever keep my initialamount to trade with thus keeping positions small. I know the argument is that you could/should buy bigger pockets of warrants but sometimes you sit with a million and the trade sizes/volumes on underlying dont allow you to sell more than 500k of them so you either have to roll them over to another day or you take a loss when the sahre drops/rises (depends on position). So I usually stick too no more then 300 to 500k positions and smaller on warrants. CFD in simmply a matter of an entry and exit. I seldom roll these over to the next day unless there is a really great run. Like IMP I was in at 183 15th and out at 192 yesterday about 10% then in again at 197 and out at 192 this morning again just a quick 5%, AMS I was in at 699 Friday out at 750 Tuesday that was 18% after costs and so on. Sometimes pure luck and other that gut feeling I get. But all in a little system I have and I am learning to let the runners run like the AMS.
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