In volatile markets look for short-term pullbacks from trends in order to enter the market, this will give you a better opportunity of entry before the inevitable turnaround markets give you.
2. Reduce position size
Volatile markets mean that there are more moves than you would usually see. In this type of situation, it is good practice to reduce your position size before you enter the market. The market volatility will mean that there is more risk to your position quickly going offside, so limit that risk by taking smaller positions.
3. Give your stops breathing space
It is best practice to always give the market breathing space around your stop and limit orders. Placing a stop too close to the market prices is the quickest way to lose money, make sure you give the market room to breathe and move. Remember volatile markets will mean the market is more erratic and more likely to take tighter stops out more quickly.
4. Take profits
It’s hard to make money while trading, so make sure you take some off the table if they are available. Don’t be greedy, remember you can partially close a position and leave the rest running if you still believe there is more to come.
5. You Don’t Always Have to Trade
Sometimes the most profitable trade is the one you decide not to make. In volatile markets you have to be quick to get in, but if you miss it don’t force a position and get in too late. You don’t have to always be in a trade.