How should a money managers determine when volatility is too high to be in the stock market or Forex?
I have subscribed to a number of managed Forex or stock accounts. Each time I seem to hit the market at a high and the manager loses a lot of money. The managed Forex accounts have lost 75% and 50% each in just a few months. The stock alerts lost money but more slowly. All of the data showed these managers were doing well until I got started. It appears that they do not know when to get out due to a down turn or too much volatility.
Answers
Creezy answered one year ago …
I don't think you are focusing on the right thing. Volatility can work in your favor as well as against you. The volatility may not be the issue as much as bad decisions in terms of directional plays. Increased or decreased volatility is something that you can bet on by using spreads with options. Volatility can work for you or against you. It's the timing of the trades that may be the problem. I would focus more on technical analysis because these days there are lots of computer programs that automatically trade currency and stock. These computer programs buy or sell security based on specific chart patterns. If you learn the rules of technical analysis, you will know what the computers are lkely to do based on certain situations, and therefore you'll have a better idea of what the next move is likely to be.
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