Michael Pascoe: How much do you get for a lemming pelt these days?

For every action, there is an equal and opposite reaction, if my high school physics teacher was telling the truth. In the trading world, it seems that for every market aphorism, there is an equal and opposite perceived wisdom.

As I write, the markets have been enjoying a little more volatility than punters became used to during the long bull run over the last three-quarters of 2009. Of course it’s nothing like the volatility most punters definitely weren’t enjoying in the year or so before that, but the attention span of the average player is notoriously short and they therefore had adjusted to, and considered ‘normal’, markets that more or less kept rallying month after month.

Anyway, perceived wisdom is that traders like volatility because it translates into opportunities to make money on the up or down side or both. Well, some traders do...

Excerpted from an article originally published in the Mar/Apr 2010 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2010, MarketSource International Pty Ltd.

To read the rest of this article purchase the back issue today click here.

Comments

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."