How to Avoid Being Fooled by Market Volatility

How to Avoid Being Fooled by Market Volatility

After months of running uphill despite pundits consistently saying market volatility will cause the uptrend to run out of steam, the market is finally beginning to look like it’s running out of steam. As we approach April Fool’s Day traders need to ask themselves “Is it a trick, or is the market volatility defining a new trend?”

A trader only needs to look at the non-market influencers to understand how market volatility becomes prevalent. Economic and earnings news is positive but the threat of rising interest rates looms overhead. The general unease in worldly politics seems to have a spotlight on the tragic comedy that is Washington D.C. Where the talk of policy change positively affecting the markets meets a failure to communicate across the political party aisle.

It’s hard for a trader to determine whether this recent downward move has legs, or if it is just another period of uncertainty caused by market volatility. How can one maintain confidence to place trades when the news surrounding the market is in a state of flux?

The answer is simple. Dismiss it.

Don’t get fooled by the noise that is the news. Focus on the charts and the data. Focus on what an artificial intelligence is telling you.

The artificial intelligence in VantagePoint is up to 86% accurate and can do a better job than the average trader of collecting, crunching, and making sense of the data needed to find trades in the midst of market volatility. VantagePoint’s sole purpose is to find movement patterns in the chaos and give them to traders as market predictions. It’s the equivalent of using a bloodhound to track a scent. It’s been trained to do a single thing which makes it the best at what it does.

The below chart is a perfect example of what happens when you trust the artificial intelligence of VantagePoint. Himax Technologies Nasdaq: ($HIMX) had a bullish crossover in early February. We see the market turns sideways roughly two weeks into the trend. The chart indicates four bearish days in a five-day stretch. Many traders would see this and get out of their position while patting themselves on the back as they think they just avoided an impending downward trend change.

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After a great start, HIMX had a run of bearish days that likely scared away traders not using VantagePoint…

But, VantagePoint is smarter than human traders. It crunches the data and indicates trend changes with a crossover of the blue line against the black line. Yes, the blue line is virtually on top of the black line. But there’s no crossover. The pinching or tightening of the two lines indicates the trend has weakened, but that the overall trend was still up.

Those same traders previously patting themselves on the back missed out on doubling their profit. The trend did not reverse. Instead, it soared up to the $9.50 area (and is still climbing as we write this). If you had gotten in when VantagePoint first identified the crossover, you’d be sitting on more than 82% profit. All while the news surrounding the market during that time attempted to increase the volatility. While the recent news may worry you personally, it won’t have you worried about your positions in the market.

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… but by trusting the artificial intelligence of VantagePoint traders stayed in the trade and more than doubled their profits enjoying 82% growth since the initial crossover.

So, as we recognize an international “day of fooling” take a minute to think about how you’re keeping yourself from being the fool. Don’t let market volatility fool you on April Fool’s Day or any other day. If you’re not confident your current tools can provide up to 86% accuracy the way VantagePoint can, maybe you’re already the fool.

Don’t be fooled by market volatility. Sign up for your free demo of VantagePoint today.

The best tools help you to avoid foolish decisions. Sign up today to receive a free demonstration of VantagePoint and ask our software specialists how VantagePoint’s predictive artificial intelligence can keep you looking foolish in the markets.

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By | 2017-08-14T14:35:17+00:00 March 31st, 2017|Stocks|0 Comments

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