This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. Today we’re going to talk about volatility and how you can use it to make more money in the stock market. Volatility […]
What is Volatility in Stocks? – A Powerful Trading Strategy Read More »
Risk and volatility are two very different concepts. Volatility is the up and down nature of markets. If your trading strategy expects the markets to move up and down, as markets often do, then you must be ready to deal with volatility each and every day. Markets trend from high volatility to low volatility and
Volatility Is Not for Sissies Read More »
A few key points to remember when analyzing market movements: Uncertainty causes much of the volatility, as neither buyers, sellers, or holders have the majority conviction to control the trend. Unexpected good news causes the market to (generally) go up as the new situation is priced in. Expected good news is usually sold into when
Understanding Market Movement Read More »
How Does Quadruple Witching Occur? Quadruple Witching occurs as four different types of derivative instruments reach their final trading day at the same time, on the same day. In the US market, the final trading day for stock options is every third Friday of each month. The final trading day for single stock futures,
What is Quadruple Witching Friday? Read More »
My trade going into the Greek elections is to stay in cash as I have been almost all week. I am not disappointed this week I will let the day traders make their money in this market and watch the bears get mauled by central bank interventions while I sit
My Trade Going into the Greek Elections Read More »
The S & P 500 has been range bound for a week holding at the 10 day moving average as support. The problem is that it can run the full range and back in 48 hours. The market is currently range bound in a $131/$134 $SPY price box. A price break out from here
Trading in the Valley of Uncertainty Read More »
A down trending market is not the same as a range bound market or a bull market.The loss of the 200 day moving average and it not being retaken by the close is a big red flag for the potential beginning of a bear market. Bear markets do not have defined supports they can fall
10 Tips on How I Trade a Downtrending Market Read More »
There are times with charts and markets that it is best to be out of them. With the current risk and volatility I have been trading smaller and smaller and less and less until finally I am only in a few positions for the first time all year. One of the keys to me holding
10 Things Traders Can Do Instead of Losing Money Read More »
While all the Apple bulls where having a celebration party on the move back to $610 today I could not help but wonder if they rode this stock from $644 to $555 and were just celebrating getting back to where they could have gotten out at weeks ago. My
Saving your Emotional Capital $AAPL Earnings Read More »
In trading activity alone does not make money, the right activity at the right time is what makes money. Many times the right thing, is to do nothing. In your actual trading you have to do four things very well to make money. You have to know when to get
To Trade or Not to Trade: The Most Important Question Read More »