how to trade volatile markets
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mikesalter
- Posts: 40
- Joined: Sun Mar 07, 2010 1:30 pm
Hi, when i look at the markets and try and analyse whats going on, someone always comes in at 3 mins before the off just as the volumes about to arrive, and sticks 20k in and wipes all the money out making a complete mess of it. how are you supposed to trade effectively with unforseen events like this?
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JollyGreen
- Posts: 2047
- Joined: Sat Mar 21, 2009 10:06 am
When that happens you have to hope you're on the correct side of the £20K!! Over the year you should find it evens out although I once got caught about 6 times without one going my way.
When the markets start to hit the vinegar strokes
just before the off, you can actually use it to your advantage. Try a 2 tick offset at first, use small stakes and place an order in the market. I tend to lay first and if I have any back orders left I simply convert them to SP. You have to be quick though hence the need for small stakes when you start practising. If a market has been volatile in the run up to the start then it can go 
about 10-15 seconds before the start and this can give you a chance.
It works better on courses covered by ATR.
When the markets start to hit the vinegar strokes
just before the off, you can actually use it to your advantage. Try a 2 tick offset at first, use small stakes and place an order in the market. I tend to lay first and if I have any back orders left I simply convert them to SP. You have to be quick though hence the need for small stakes when you start practising. If a market has been volatile in the run up to the start then it can go about 10-15 seconds before the start and this can give you a chance.It works better on courses covered by ATR.