Is your trading going round in circles?

• Only 60 hours left to snap up Wall St Time-Shift Trader, before it goes to full price

• Where next for the Dow Jones

• What not to do in a volatile market

If you haven’t yet signed up for your risk-free trial of Time-Shift Trader – there’s still time (just!)

As of midnight on Sunday, this special offer (which is open only to Trader’s Bulletin readers) must close. After that, Time-Shift Trader will only be available at full price.

I’m very excited about this strategy, which I’ve been using since May this year to pick up easy profits on the Dow Jones, with a simple lunchtime trade.

Chasing your tail

If you ever feel like you’re running around, working hard – only to end up in exactly the same place you began …

Then you’re in prestigious company.

Take a look at this year’s activity on the Dow Jones …

All that optimism … all that fear … all that uncertainty … and we’re back to where we began in January 2011.

But this year’s trading on the Dow Jones has been anything but boring!

On 18 different trading days in September, the Dow swung by at least 200 points. In one week, it moved more than 400 points a day for four days straight.

And on 4 October, it jumped more than 400 points in less than an hour.

Every one of those moves represents a potential profit for us traders.

If you’ve not been in on this action – you won’t have seen any of these potential profits.

How to trade a volatile market

People tend to have one of two reactions to volatile markets – one trader will rub his hands in glee … the other will be frightened off by those big moves and unpredictable behaviour.

Which one is right?

Well, they both are.

Yes – we should get excited about all that lovely volatility – it has the potential to deliver the biggest profits. But, if we’re not careful, that volatility can also be our downfall.

The most common mistake I see traders make in volatile markets is that their heads are turned by the big moves.

“400 points in less than an hour? That could have made me and easy £2,000!”

Well, yes, potentially, it could have. But if you want to go chasing big moves in a volatile market – you’ll need big stop losses, and very deep pockets.

Too often I see traders crash out, because they are trying to ride the peaks and troughs of a very wild market.

And they are missing the point.

The beauty of a volatile market is that it is always moving.

We don’t need to go chasing 400-point moves – instead we can pick up smaller moves. This keeps our profits regular – and our risk small.

If you’d like to find out more about how I’ve been applying exactly this philosophy to the Dow Jones, make sure that you’re signed up to Trader’s Bulletin to be kept informed.

Which way next?

Volatility is fast becoming the norm for global markets. With so much uncertainty on the future of Europe, plus credit downgrade threats (at the UK this week) – we can expect sharp swings to become part of the landscape.

For that reason, as traders, we need to become comfortable with these trading conditions. Then, we can rub your hands in glee at the sight of big moves, confident that we know how to tackle these markets safely – and profitably.

Related posts:

The truth about summer trading … and autumn trading … “Hey, watch this!” – How to take trading risk, without doing anything risky