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#1 Posted : Tuesday, February 28, 2012 10:48:49 AM(UTC)

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MetaStock University - Trading the Market Volatility like a Professional - February 28, 2012
By: Jeffrey Kilian
Trader / Technical Analyst / Educator

Trading the market volatility like a professional first and foremost is realizing that your greatest positional advantage as an independent trader “is patience”. You absolutely positively have to wait for the trade to come to you to be a great trader. Next is learning how to find track and trade with the institutional participants in the market place. These are the people whom actually have the deepest pockets and will literally move prices from one level to another and more over one direction to another.

Second you must follow a proven Trading Methodology that can find track and then trade with these Smart Money Players. Once you have indentified where they have bought in especially at key pivot point highs or lows as they are aligned with superior support or resistance levels, this is where the most amount of money should be made in the shortest period of time.

Through trading history, large volume spikes or accumulated volume levels have always been the catalyst for the largest prices moves any trader or investor could possibly need to be profitable before the moves began. And I say again before the moves began. This is where the rubber meets the road as volume will clearly state ahead of time where there is proven accumulation or distribution to be traded on.

Next we must confirm these volume spikes or accumulated volume levels are really Smart Money or not. This is accomplished by referencing various Money Flow Indicators to again confirm whether that volume we have just discovered in worth putting or hard earned money on the line or not. The flow of institutional funds in and out of equities and futures on a daily basis can be confirmed as real institutional accumulation or distribution by knowing how to correctly interpret these indicators in making a relative comparison between money flow and the volume.

Market volatility is the element that we need to actually trade and make money. Where volatility is a measure of variability, those price move created by it become the price moves that we can trade to make our profits from. It is important for traders at any level of experience to understand that every true high probability trade will always have three parts. The setup, the trigger and the follow through. The set up is the one you have been trained to identify with as having real insider institutional accumulation behind it. Patience in waiting for the trade to come to you has led you to an entry whether long or short with precision. The follow through is managing the trade with an acceptable risk to reward ratio that is laid out by your protective stop as compared to your price profit target. And all of this is well planned out long before you trade.

In trading there are two types of capital, emotional and monetary. One is just as important as the other. Investing in yourself and getting real professional training can make all the difference in your trading performance. Trading every day in acceptance of the fact that you are trading only the true high probability trades brings to the table what every trader want to know and few have arrived at.

About Jeff Kilian:

Jeff Kilian is a trader, technical analyst, and educator. He is the founder of www.theinsidetechnician.com specializing in “one on one’ developmental training for those whom aspire to become real life profitable traders.
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