Narrow Range Volatile Market, A Must-Read Guide for Beginners to Avoid Pitfalls!

I have lost quite a bit of money in a narrow range volatile market, and today I want to share some tips on how to avoid pitfalls.

Every time there is a volatile consolidation, looking back it always seems like the starting point of "making a fortune," "financial freedom," or "recouping losses." But in real trading, there are a ton of problems: how to judge the end of the volatility? Can we avoid false breakouts? What does an unexpected volatility indicate? Where to place stop-loss after a real breakout?

These questions can theoretically be solved, but when you actually enter the market, you’ll find that they are all big pitfalls, almost unavoidable. To put it harshly, unless you lose money a few times, you really won’t learn your lesson.

Here I offer a very simple handling logic, especially suitable for beginner traders:

1. In a narrow range volatility, absolutely do not touch it!

2. If you must participate, use a small position + wide stop-loss, don’t bet your entire fortune!

3. Be patient and wait for the volatility to finish, entering on the right side is much safer!

I am Lei Siling, click on my avatar to follow me. Want to know how to bottom-fish and escape at the top? I’ll share it for free to help you set sail!