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Traders profit from volatility, not direction. You can go long or short, so flat markets are the real problem. News events create the price moves that matter, and technical analysis helps you catch them.
Traders profit from volatility, not direction. You can go long or short, so flat markets are the real problem. News events create the price moves that matter, and technical analysis helps you catch them.
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.
