The market is down this morning and things are clearly volatile right now. It's interesting because normally when the market is this close to all-time highs, there isn't so much volatility.
One way to conceptualize the degree of volatility is to look at the Keltner Channel right now. For those who have been learning my stock trading strategy, you may have already noticed this. But for the market as a whole (using say the MES futures chart), the Keltner channel is really wide. That shows just how much the price has whipping around lately.
What's my game plan amidst this volatility? I'm sticking to the plan and taking the trades that set up. Is there risk, and could there be more losses? Absolutely. But I'm looking at the big picture view here. I'm keeping in mind the 20-year back-tested history of these trading strategies. Just think about the past 20 years -- were there periods of volatility before? There certainly were. And yet if someone had found a way to stick to the plan throughout it all, the rewards might have been significant. That doesn't mean there isn't substantial risk! It's just what I remind myself to keep my frame of mind geared properly, since I'm comfortable with the risk. And with that frame of mind, I'm often able to peacefully give more space to the emotions that come and go in the short term.
If you have any questions or feedback, I'd love to hear from you.