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Re: WARNING: Extreme Volatility Ahead!
fxscalper,
I don't see any problem with volatility increasing (unless the 5-7 cent swings are on the minute bar). Volatility goes up and down, like most economic factors, and the "size" of the volatility is dependent on the instrument. Whether the increse is a "danger" or "blessing" depends more on your trading methodologies. I myself prefer larger volatility over smaller.
When you say volatility is increasing, what you are really saying is that the "frequency" of the swings in shortening. The 5-7 cent swings have always been there, it's just that the swing was in a freqency (time period) that you prefered (weekly/month). So if the increase bothers you then you will need to shorten your time period you use to trade or change your trading methods that capitalize on volitility in your current time frame.
What that really means, and what others are alluding to, is you can make more money in a shorter period of time. What you are saying is that you are going to loose money quicker. I guess in that regard it's just a matter of opinion about your trading capabilities. As for me, I plan to make money.
Gary
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