Volatile Market.

long time ago if you wanna see a free fall movement maybe its only once a year. Many newbie trader quite shock with the current market, yesterday my friend ask me eh why the market moving so fast, i put my Stop Loss 70 pip its like nothing,just a few second my order will disappear from terminal because of stop loss. Well i said volume in the market its not like before, now in one day transaction in forex is 4.3 trillion. Increasing 1 trillion. You must change the trading style and money management, higher time frame likes 4 hour and 1hour its not suitable for the current market because you are facing with high stop loss, 200 - 300 pips for now its an average. 100 pip below is very tight and your entry must be sharp.

Its a very good way when you split the order divide by 2. Means if usually you just make one order but this time try to enter the market with 2 order, Same price same Stop loss but different target profit. One order follow you trading plan such as 50 - 100 pip perday. But another order just lock the profit and let the order generate the profit. Its not weird if you can get 1000 pip a week. :).

My advise is control your emotion and money management, because of the volatility will tight your neck. Cut the losses when your recognize the reversal signal. Dont try to keep fighting with the market,its not a good way.

Another solution is arrange your money management to get a 5 trade perday. If your money management 6% per trade,divide it by 5 = 1.2% per trade. Yes its very small and i maxsure many of you dislike with this plan. Ok let me explain how 1.2% * 5 trade = 6%. each trade your reward is 1.2:5. means risk 1.2% but reward 5%. 5% * 5 trade = 25%. you can win 25% perday, just because you grab the chances with the volatile market.

I also still in practising low risk but big reward. One of the strong point why i said like this is. You can see the figure below.



One of the example how to take the chance during the volatile market.

My trading style is base on my researching and many times of observation. I just wanna spread my knowledge and its not for make you all as a tester. But easy to say if you not confidence please do it in demo account first, or the best way is find other strategy how to trade in the best time.

Thank you.
regards
Al-Yaqen.