The crypto market as we all know usually fluctuates abruptly making it very difficult for traders to predict the price movement. Because of how volatile the crypto market is, it's been severally reported that traders do record significant losses whenever they fail to manage their trades properly. So I'm asking now, should we consider volatility as the nightmare of crypto traders or not?
It's not a night mare for those traders who understands how the market operates.. the volatility in the market, brings us opportunities to buy or sell and make profits. If the market was less volatile, we probably would not be having chances to enter any trade. Though most times when we experience loss, it's most because you cannot always get a good trade no matter how good you are in trading.
You're right, volatility is a key to profit making in trading. It takes a professional trader to maximize profits and reduce loss on market trends no matter the volatility. Though it is obvious that profit realized can't be 100percent, but volatility creates chances for placing trades.
It can be a nightmare sometimes when market isn't analyzed accurately and allowing traders make huge losses, but it all depends on your trading strategy and the kind of asset your trading on.
In all the volatility of any Crypto asset determines the rate of profit or loss to be realized from each trade, so it's a positive factor in trading Crypto assets not a nightmare.
Volatility does have its part to play in opening up chances to make a profit for us as traders and particularly in trading cryptos. Also, it is important to understand how we can leverage these oscillations in the market for achieving better results, this is the kind of skill that we need to develop further. Where the strategic approach is correctly implemented the firm is able to address the change in the market in a way that allows the firm to also fully exploit gainful opportunities while at the same time minimizing risk incited by uncertainty of the market.
After all, it may be understood that full profit guarantee can never be made, however, the questions that need to be asked are regarding the techniques that can be adopted in order to measure risk and then speculate. Fluctuations which normally would be viewed as an unfavorable factor give us the opportunity to get much larger results provided that we know how to respond to them adequately and have a definite plan. Having adapted the perspective where volatility is not viewed as threat but rather as possibility, it becomes easier and possible to remain stable in all the trades they make, which in turn, will enhance long term gains.