Staying afloat in a volatile market can be tricky for many day traders. Inexperienced traders react to volatility by either jumping in or bailing out of a trade only to find out the market has gone against them.
They don't realize that volatility and liquidity must be present in the market to capitalize on the "high probability trades."
The one emotion to trade with market volatility like a professional is realizing your most significant positional advantage as an independent trader is “patience.” Yes, waiting for the trade to come to you instead of chasing the market.
It's like a lion waiting to pounce on its prey immediately.
So, how do you trade market volatility like a professional?
👉You must first follow a proven Trading Methodology
that can find track and then trade with these Smart Money Players. Once you have identified where they have bought in, especially at crucial pivot point highs or lows aligned with superior support or resistance levels, this is where the most money should be made in the shortest period.
Throughout trading history, large volume spikes or accumulated volume levels have always been the reason for the most significant price moves any trader or investor could need to be profitable before the moves began.
And I say again 👉 “before the moves began”.👈
👉👉Secondly, Learn how to find, track, and trade with the institutional participants in the marketplace. These people have the deepest pockets and will move prices from one level to another and from one direction to another. This is where the rubber meets the road, as the volume will clearly state ahead of time where there is proven accumulation or distribution to be traded on.
But
👉👉👉We must confirm whether these volume spikes or accumulated volume levels are Smart Money.
This is accomplished by referencing various Money Flow Indicators to confirm whether that volume we have just discovered is worth putting our hard-earned money on the line.
The flow of institutional funds, in and out of equities and futures daily can be confirmed as follows:
> Actual institutional accumulation or distribution
> Knowing how to interpret these indicators correctly is critical.
> This is to make a relative comparison between money flow and volume.
💹Market volatility is the element we need to trade and make money. 💹
Where volatility is a measure of variability, those price moves created by it become the price moves we can trade to make our profits. Traders at any level of experience must understand that every high-probability trade will always have three parts.
* The SET UP. The set-up is the one you have been trained to identify with as having natural insider institutional accumulation behind it.
* The TRIGGER. Patience in waiting for the trade to come to you has led you to an entry point, whether long or short, with precision.
* The FOLLOW- THROUGH. The follow-through is managing the trade with an acceptable risk-to-reward ratio. It's indicated by your protective stop when comparing it to your price profit target. And all of this is well planned out long before you trade.
In trading, you need to have two types of capital:
👉 Emotional
👉 Monetary
One is just as important as the other. Investing in yourself and getting real professional training can make all the difference in your trading performance.
When you trade daily, you should only look for high-probability trades. This brings to the table what every trader wants to know, and few have arrived at - “How to trade the Market Volatility like a Professional.”
Find your trading sweet spot and capitalize on it today. Get a professional day trading education. And never look back
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