volatility creates opportunity

17 Sept 2026 · 1 min

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In this brief segment, the speaker explains that traders profit from market volatility because they can take both long and short positions. When markets are flat, opportunities disappear, making it difficult for traders to generate returns. News events are highlighted as reliable catalysts that generate volatility, providing the price movement needed for trades. The speaker emphasizes that technical analysis becomes valuable only when volatility exists; without news-driven moves, even a trade may stall at breakeven due to a lack of price momentum.

Chapters

And as traders, the fact that we're not limited to only buying low and selling high, the fact that we are able to go long and short means that all we need is volatility. The times when traders struggle the most is when the market is not moving, when the market is not doing anything, because then there is no moves for us to take advantage of. But when we have news, we can predict that with a high degree of certainty, there is likely to be volatility around this time that gives us something to work with. And that's where our technical analysis comes into play. None of this would matter if today's not a news day because there just wouldn't be as large of a move, right? Even if we do get into a trade and then maybe it might stop you at breakeven because of a lack of a reason for price to have volatility.