Low volatility can seem like the market’s hardly moving at all, but in reality the only thing that is changing is the volatility, so your stop loss and your profit targets need to change accordingly. If, for example, you normally trade with a 40-dollar target and 20-dollar stop and then your targets stop getting hit and you’re losing more than you should have been losing relative to the risk reward, you didn’t adjust your money management as the volatility shifted. We need to make a habit out of observing market volatility every time we analyze the market and make sure we adjust our stop losses and targets as well as position sizes, according to these changing market dynamics.