Ask anybody about their trading strategy in volatile markets and their immediate response will be to point out to the India VIX that has been consistently falling over the last 7 months. In fact, since the election of Donald Trump as president of the United States in early November 2016, the volatility in Indian markets as well as across global markets has been on a clear downtrend. Volatility Index (VIX) is also known as the Fear Index and captures the extent of fear in the market. Normally a high level of VIX is a sign of fear in the market and tends to be followed by a correction in the markets. But they, why worry about such things when the VIX has literally halved in the last 7 months and is almost threatening to go into single-digit territory?

1.  In a long-term bull market, cash is king in volatile times..


2.  There is no point in trying to time the market, but do use benchmarks


3.  Keep investing regularly; that is safer and simpler
SIP

4.  If you are a trader, stick to your trading plan and your risk tolerance
risk tolerance

5.  Preserving your capital is the top priority


6.  Profit is what is booked; all else is book profit