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Volatility Makes for Good Short-Term Trading on Forex
This is a good rule about Forex trading: The more volatility an individual market has, the better suited it is for short-term trading. To assess which stocks are better day trading vehicles, one way to calculate volatility is simply to divide its price by its average daily range. The lower this number, the more important it is for a trader to hold positions for longer periods of time in order to rise above the noise and overcome the spread between the bid/ask, plus commissions.
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