As I've often stressed through the posts here at Samurai Trading, one of the most important elements to trading with consistent profitability is being adaptable to shifting market conditions. Nothing stays the same forever in the markets. Price consolidating for days, hours, or even minutes will often lead to an aggressive breakout on those respective timeframes. Lengthy periods of low volatility will typically quickly shift to periods of high volatility. We can't always perfectly predict the timing of those shifts - just ask the Inverse VIX traders who got blown up - but they will happen eventually.
As traders we need to be prepared for such events, ready and willing to embrace shifting conditions in order to make the most of them. More importantly, preparation is necessary to limit any potential risks that come from those changes. A trader who only thinks of the potential for profit when volatility goes through the roof probably won't be a trader for long. The one who sees opportunity but makes sure to manage risk carefully is the one that will not only survive, but thrive. Read more
