The optimum trading experience begins with a volatile market. Not enough volatility creates a situation that makes it harder to have large enough positive days to offset the negative days. On the same level too much volatility creates an environment in which it is extremely difficult to hold positions for big gains. Picture a heart monitor. If the heart is beating to slow the patient will not have enough blood flow or energy or stock movement or currency movement to get a jump on its competition. If the heart is beating too fast that is extremely dangerous for the patient as too much volatility decreases the chance of being able to follow a stock or currency on it's true path for an extended period of time.
The quote about the trend being your friend is not something to be taken lightly. It is however something that must be truly understood to succeed in trading in any type of situation. Let's say for example that "ABC" stock or commodity or currency opens up 50 cents and closes up 25 cents. If you are lying on the beach and at the end of the trading day you hear that your long term investments rose 25 cents for the day you would be very happy. If, however as a day trader you bought into that position when it was positive 45 cents and sold it when it was positive 28 cents you would not be a very happy camper. This is where a great indicator known as 'net since the open' comes into play. When I look at a quote of a position or potential position I look to see the current price and what the position is up or down for the day.
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