Thursday, 29 March 2012

Sporadic Market Movement?

One of the features of these lower volume markets seems to be more sporadic activity. The market can be quiet and then there is a burst of activity. Discretionary traders sitting in front of screens often miss the move unless they have stop entry orders in the market. This is not possible if the market doesn't set up properly.

The medicine for this seems to be to trade bigger size for smaller targets on the pullback following the move. This is not possible for everyone due to both experience and financial resources. Just another "feature" of the transition we are going through.

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