Volatility is traders' best friend in the forex markets, and it refers to the rapid and unpredictable price shifting that happens daily. So it can be measured in sudden price spikes up or down, and it is visible on all charts.
Volatile markets are a hint for investors towards trading opportunities and potential profits. That said, traders can make massive profits by risking 100% of their investment. Such trading practices turned out to be devastating blows for the average retail traders that keep on repeating the same mistake of buying high or selling low. Remember the golden rule in trading always follow the trend and always manage your risk!
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.