Do you prefer high or low volatility?

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Rambo35

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Apr 22, 2013
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Volatility is often viewed as a negative in that it represents uncertainty and risk. However, higher volatility usually makes forex trading more attractive to the forex trades because it creates bigger possibilities for profits.
 
oftenviewedas a negative in hat it represents uncrtainty nd ris. However, higher volatility usually makes forex trading ore attractie o the forex trade because it creates bigger posibilities for rofit.
 
i prefer high one, my scalping strategy would works great riding the market wave. but it would require a decent brokers with scalping friendly trading enviroment.
 
High market volatility is usually caused by fundamental events and can both be advantage and disadvantage to traders. The higher the volatility the riskier the trading of currency pair. And so it important to be careful in volatility trading.
 
i would prefer high volatility market. as my trading strategy scalping, volatile market condition even suit best my interest. but it also require a decent brokers company with friendly scalping trading enviroment.
 
i prefer high one, my scalping strategy would works great riding the market wave. but it would require a decent brokers with scalping friendly trading enviroment.
Agree with you, I think that is where the problem lies.The conditions surrounding our scalping strategy and the ones from the broker.
Since a high volatility market are best time to execute scalp entry, they are integral to scalp.
 
I seldom use scalping technique , I like less volatile market. Volatility is not easy to handle for every one. Having low experience trader should not try it. Do practice on demo in volatile market to get practice . Some brokers had restrictions for scalping. I think smooth market is good for making normal profits.
 
For scalpers a High Volatility would do more good than harm,but for a beginner a low volatility would be okay.Some scalpers would prefer to trade on a strongly directional, highly liquid and volatile markets. This choice to me is mostly a matter of personal preference
 
Volatility in the markets is like a double-edged sword. It can serve to your advantage or destroy your account as well. But for a good trader it may really provide an avenue to take advantage of the opportunities that volatility brings and make some good profits.
 
As I'm a long term trader so volatility don't matter much to me. In fact if my TP or SL is taken on the same day it amazes me, because normally my trade outcome comes after 2 to 4 days.
 
Sometimes I do scalping, so better the pairs were volatile. If we talk about long time trades, it's no matter, in fact.
But if I had to choose the exact variant, I'd choose the first one.
 
I would prefer high volatility. It can generate more trading opportunities for short term traders but it also includes lots of risk so depends on how much risk i want.
 
current market conditions are to decide this factor. one can not have a mindset to opt for either low or high ones. it depends on trading pattern
and market conditions.
 
Actually nobody can predict with certainty the movements of market. For some people low volatility is good as they don’t want to take high risks so they cautiously make investments in risk averred assets and are satisfied with normal profits. However, news traders prefer to trade during news hours as they believe high risks lead to high profits. So, they usually trade in market of highly volatile instruments like EUR/USD, EUR/GBP, GBP/JPY etc. All in all for profit making it depends upon the trading strategy that we select according to our trading capability.
 
For me higher volatility is better. The stop losses need to be larger but so are the take profits. The spread usually stays about the same so the relative 'cost' of trading actually decreases in times of higher volatility (obviously I am excluding times of high volatility due to news events like NFP etc. when the spread can grow massively)
 
Every trader has his own strategy according to which they work with market. Many traders like to work with high volatility in market because it can give more pips with market so they prefer high.