Phenomenal Volatility of 2011

2011 has been a phenomenally volatile year. There have been some fantastic trade opportunities if you are nimble and highly skilled, but even the most experienced and disciplined traders I know have expressed their frustration at some point over the last year.

I talk with some pretty high caliber trading and investing professionals and regardless of the style they implement in the markets (growth, value, momentum, short, hedged, etc.) every single one of them has experienced more ups and downs in their returns than they are comfortable with this year.

At times the volatility has been downright nauseating, if you have been actively involved, I am sure you are reading this nodding in agreement. I know it is true for me as well. There have been more “sucky market days” this year than I can remember.

click chart to enlarge

If you have read my columns here or seen any of my videos somewhere on the web, you know that I believe that “defense wins the game” when it comes to the market. I cringe when I see the risks an inexperienced participant will accept. When the bets of these newbs pays off and they make a nice score in the market, their confidence builds. They believe they have “cracked the code” of the markets and dreams of riches inflate their heads. I know because I have had (and still do have) those dreams.

CLICK HERE to read the rest of the article.