To churn money in financial markets, price movement is to be witnessed. In markets price movement is consistent. Varied degrees of price movement might be witnessed in the market. The market may witness a lull at certain points of time. Some longheads are going to witness outsized movements but in the overall context most stocks are experiencing an upward movement. In certain cases the market may be slow and flow quietly in one direction or they can be trading with a small narrow price range.

On the other side of the coin, sometimes prices may move at a rampant rate. The rate of growth is referred to volatility in stock market. You also need to take stock of the most volatile stocks this month. But a consideration as volatility in market increases, chances of making profits increases. In simple terms you are able to generate above average profit within minimum time frame or vice versa. This could be the same if things go the other way. In a volatile market, you can lose considerable amount of capital within a short time frame. The key aspects of a financial market are as follows

Clearly outline your objectives and which areas you are willing to take a risk.

Increase of volatility by definition means in comparison to average speed prices may be falling or higher than normal trends. Higher potential with better risk abilities are witnessed. A majority of investors may consider volatile market as a safe option to play. In a way you cut down on risks when a market is at its most volatile stage. In case of many individuals this could be true. But here we are about to discuss on how you can make profits when a market is at its most volatile phase. Just make sure of the below areas

• When a market is volatile you are willing to invest

• Your main aim is to increase profits

• You are aware that there is a significant risk of losing capital and are willing to adopt a wait and watch stance

Once you are ready, next step would be to take stock of all control measures which are a part of your trading plan. Important points to ponder are placement of stop loss and position sizing. In volatile markets on a daily basis price swings are not the normal self. Traders are likely to commit a small sample size for trading and when markets are quiet adopt a stop loss placement at a wider level. Your precise aim would be not to get stopped due to intraday price fluctuations at a normal level. The purpose would be to keep the same risk levels. To put in simple terms with a wider spot a small position and with a tighter stop a large position. Traders can take note of the fact that you can execute stop orders far away from the stop price if a price gap is witnessed.

Watching out to breakout from consolidations

A common method which is being used by traders is to buy the breakout. With such an approach a trader goes on to monitor the stocks that are being traded with a support and resistance range. Till the point the stock would remain in that range, no action is expected. But moment price goes on an upward curve the trader would go on to buy the stock in the hope of breakout signals. This would be the starting phase of the new pep up leg of a stock.

If the market appears to be a quiet one, the chances of a stock moving to an upward curve is there with a shift of momentum. It would eventually fall or drift apart below a breakout level. But if the market is volatile when the prices are always fluctuating, if an upside run occurs it can lead to a paramount increase in the price of stocks. This could be one of the main reasons for a trade breakout in a volatile market. But a catch would be that if the market is volatile a reversal that could take from a false breakout can happen very quickly. At the same time the decline of price would be a lot severe in comparison to a quiet market environment. If a trader chooses in choosing the buy the breakout option, then in a volatile market they can go on to consider the option of a stop loss method. This would be an attempt to cut their his or her loss if the price falls below a certain distance of the breakout point. This would go on to limit the loss within a permissible range.

Rely on short term strategies

Another effective approach which most traders resort during a volatile market is to focus on short term strategies. This would involve a move to make more profits or locking in profits which would be quicker than normal. You should evaluate the needs of a trader who goes on to buy stocks once they break over resistance. Once the prices of the stock rises the trailing stop would also go on to raise paving way for a higher chunk of profits.

Once again in volatile markets profits can accrue following a breakout. Profits could vanish and previously traded profits could turn on to lose quickly. Because of this reason, traders are expected to consider more profits when volatility is on the higher side.

• To set a certain profit target as percentage

• Relying on the use of an oversold target indicator. For example it can be RSI and selling it when you feel that is overreliance on the purchase of that particular security.

• To activate a trail stopper than the normal or rely using a trailer stop than normal

• Selling a portion of the stocks at a profit and holding remaining profits in the hope that you would make additional profits.

Price movement does provide a traders to make profit than anticipated levels.