Market Volatility of Historical Proportions! & Trading Levels 3.12.2020
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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- Take a look at the below chart from 2008 of the mini SP, last time I remember volatility close to what we are seeing and you will see that the moves are not a straight line….don’t get over excited if you are long and market bounced your way or vise versa if you are short and the market is limit down….this volatility will play both sides and in MY OPINION this is not a market to just buy and hold using futures….You need to be able to react and adjust positions according to market action and sentiment.
- By no means am I trying to imply that we can see a 50% correction like we saw back then BUT have respect for the market and the price action and DON’T try to predict tops and bottoms….
- Learn to reduce trading size. Perhaps trade smaller contracts like the micros.
- Understand that loses are part of trading and this is definitely not a good time to “fight the markets”.
- Focus more on risk management and ways to protect certain positions as needed.
- Survive to trade another day.
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