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Adapt or Die!

18 Years ago | May 27, 2014 10/1/22, 12:00 AM

There has been a lot written about the steady drop in forex market volatility and tight ranges, which has led to a sharp fall in forex trading volumes. Some have expressed concern over whether this is a long-term trend while others have expressed hope that not is just temporary. Whatever the case, there is no reason to worry about what you can’t control and you have to adapt to the current environment to survive and prosper.

Forex volatility tends to pick up when there is a polticial or financial market crisis, and up until last year the currency market had become accustomed to one occurring on a regulaqr basis. You could go as far as saying the forex market was hooked on a crisis occurrring. However, we are now in year two without a real crisis.  Over this period, events that might in other times led to a crisis have not seen one materialize (e.g. Ukraine).

Adapt or Die!

I recently wrote an article call 9 Strategies You Can Use in a Low Volatility Market. In it I wrote,

Low volatility markets can be frustrating and it easy to get chopped up in tight ranges if you bet on breakouts but the history of the forex market is that they do not last forever. However, while volatility stays low, adjust your trading strategies so you can build a cache of profits so you can take some risk when market volatility picks up.

Adapt or die may be a little harsh but you get the point. Trading volatility may never go back to the way it used to be but it hopefully will improve from the current depressed levels. In the meantime, you need to do more than survive. I suggest reading my 9 Strategies You Can Use in a Low Volatility Market as it will give you some tools to use in the current market.  


See a followup article: Adapt or Die (Part Two)

Jay Meisler, founder

Global Traders Association

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