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Updated: Oct 31, 2018

"Obvious Danger" Sign

Whoa! Market volatility is taking traders on another rollercoaster ride! And it doesn't look like it's stopping! Volatility is a sign for obvious danger in the markets.

But, it sure makes for a fun trading environment! For prepared traders, that is.

It's a lot of fun for traders who are prepared, who plan out their trades, who manage their risk, widen their stops and reduce position size. For traders who know their plan, trade their plan and execute their plan.

It's fun for traders who are not full of fear, and who don't get greedy. It's fun for traders who are comfortable taking risks but manage and control that risk.

But it isn't very fun for those traders who grab the wrong end of the chainsaw.

Unprepared traders can end up being oblivious to the obvious dangers. They consequently engage in doing the wrong things that end up being pretty obvious mistakes when the dust settles.

Experienced traders have likely ignored obvious danger once or twice....or many times in the past. They've been burned enough, hurt enough, cut enough, lost enough that they eventually learn to prepare and plan. But they still get nervous.

Feeling nervous is completely natural and normal. The markets can cut you, every time you get in just like it's possible every time you turn on a chainsaw that you could injure yourself. That possibility is increased during these volatile times. So you must have preventative rules in place.

The feeling of nervousness is actually good because it will keep you aware of the dangers that are real.

Obvious dangers, like not touching the wrong end of a chainsaw.

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DISCLAIMER Options, Futures and Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. This is neither a solicitation nor an offer to buy or sell futures, options or forex. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed here. Past performance is not necessarily indicative of future results. 

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Testimonials appearing may not be representative of other clients or customers and is not a guarantee of future performance or success.

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