Many evening newscasters will surely mention today’s moderately historic economic activity, with the Dow loosing near 600 points. Of course, the Emini was along for the ride, dropping in price throughout the day. Unlike other “flat” day trading strategies, price action takes into account real-time price behavior. The day trading courses offered at Day Trade to Win teach traders how to exercise constraint, avoiding markets that are simply to volatile for retail traders to trade. Many traders see great opportunity with the market ranging as wildly as it has in the past week. When price can change four points in less than a second, its easy for a trader hoping to get the big win to blow up his or her account. As day trading coach John Paul says, trading when the ATR is above 5 is unwise. Today we saw the ATR hit 9.
Normally, the overnight Globex market is best avoided due to low volatility. However, in light of recent activity, the overnight may be the must tradeable in terms of volatility.
