It is still amazing to see how the public will become so bullish when a stock is at an all time high. Just think about how bullish people are on the financial news networks when markets are rallying up by 2.0 percent in a single trading session, these people behave like cheerleaders at the Super Bowl. On the flip side, the same people become so fearful when a sell off occurs and the stock market indexes decline by 2.0, or 3.0 percent. If you have watched any of the financial media channels when a sharp decline occurs they act and speak as if they were at a funeral. Rarely, will the media say hey there is a great opportunity here for a short term bounce. No, you won't hear the financial media tell you where the opportunities are in the stock market when there is volatility or fear taking place.
Believe it or not, some of the best markets to trade are the markets that are filled with volatility and fear. This is why you want and need to learn the technical pattern setups that occur on the charts each and every day. Just look at today's decline in Apple Inc (NASDAQ:AAPL) to see what I'm saying. Most people at home were panicking as the stock declined lower by more than $40.00 a share at the open, yet the I managed to buy the stock at $502.54 and traded it for quick $6.00 gain in just minutes. You see, volatility equals opportunity if you know what you are doing.
Right now, corporate earnings are being released in droves every day. These earnings releases are creating numerous intra-day, and daily chart trading opportunities. Traders and investors must learn how to take advantage of these opportunities rather than being fearful, and scared. Learn to read the charts and you will soon understand that volatility equals opportunity.