Low Volatility Trading – An Underexploited Profitable Niche 7 Steps to Successful Low Volatility Investing When I began my career as a trader more than a decade ago, I often told my colleagues that as traders we got paid for taking risk. That's what I was taught in my MBA classes – there is a fundamental tradeoff between risk and...
Watch the 15 Year Trendline – Weekly Market Outlook Stocks may have ended the week on a high note with Friday’s 0.88% gain, but it was nowhere near enough to undo the losses suffered earlier in the week. When it was all said and done, the S&P 500 (SPX) (SPY) fell 33.60 points (-2.1%) last week, closing out at 1555.25. Oh,...
10 Concepts Option Traders Need To Know How to Avoid the Top 10 Mistakes New Option Traders Make In this article I've analyzed ten of the most common option trading mistakes. Options are by nature a more complex investment than simply buying and selling stocks. For example, when you buy options, not only do you have to be right about...
15 Essential Technical Analysis and Charting Technique Trading Books [All of these are available on Amazon.com] Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy Widely regarded as the modern bible of technical analysis, this outstanding reference has already taught thousands of traders the concepts of technical analysis and their application...
One Expert’s Data Indicates 21% Gain on S&P 500 in 2013 Do Bulls Have History on Their Side? Convergent Wealth CEO David Zier is a sought after financial advisor. And he has some surprising views of the market. Zier suggests that the best way to invest this year may be with an index fund that tracks the S&P 500 (SPX)...
Bullish vs. Bearish: Demographic Trends and the Stock Market Bullish – Demographic Tailwind Until 2028: There are several points made in support of a transition process occurring from a secular bear to a secular bull market. Among them, the ratio of high income to lower income working age groups correlates to major bottoms and tops in the market as shown below. The...
How Hedge Fund Managers Use Equity Options Trading Volatility as an Asset Class Volatility as an asset class Volatility trading possesses a number of attractive qualities for both the fund manager and his ultimate investor. As an asset class, the cost of volatility increases when uncertainty increases, but also has a tendency to revert to a mean. It can be...
VIX Option Hedges Increase, Even As Most Expire Worthless VIX Options Hit Record as Investors Brace for Stock Pullback Low readings by the market’s so-called fear gauge may be signaling comfort, but a deeper look into the VIX options market shows a record amount of activity in contracts that can protect against a market slide. Investors have snapped up options that...
18 Timeless Trading Rules to Increase Your Investing Profits Here is a nice list of 18 trading principles below. I must admit, I am not smart enough to have devised these ridiculously simple trading rules. A great trader gave them to me some 15 years ago. However, I will tell you, they work. If you follow these rules, breaking them...
How Low Can the VIX Go? 2007 Lows May Be In Reach The market’s fear gauge doesn’t have a care in the world these days. The CBOE’s Volatility Index, or VIX (VXX), recently fell 7.2% to 11.69, falling below 12 for the first time this year. The last time it hovered around current levels came in 2007. Considering how far...
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