Showing posts with label credit crunch. Show all posts
Showing posts with label credit crunch. Show all posts

Sunday, September 21, 2008

Volatility and the markets

There are basically 4 combinations of states that the markets can be operating in:

1. They are either trending or non-trending;
2. They are either quiet or volatile.

Trend followers prefer quiet markets that also trend. Day traders prefer volatility. Swing traders prefer volatile trending markets to catch swings from a couple of days to a couple of weeks.