The volatility in the market over the last two months has been crazy with a 10% drop in price and then a recovery – what gives? How do you handle this sort of market move?
Volatility usually occurs when there is any form of uncertainty and fear and the market overreacts. People panic and they start making irrational decisions. The media can also help to create this chaos and build on the fear, freaking more people out.
Right now, the economy hasn’t changed much. But a deadly virus raging in another country like Ebola made enough noise to cause major chaos in September.
Watch on and see how I have traded during this volatile period and how I took advantage of short-selling and rode some channel bounces, but at the same time also had some stop losses hit in some of my long-term trades.