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Last Updated: May 6, 2008 - 6:47:21 AM |
Trading Psychology
What the VIX is Telling Us
The VIX ($18.90, up $0.72) or Volatility Index is a tool you can use to gauge market volatility. It is modeled after the S&P 500 and gives you an idea of investors' confidence or non-confidence in the market. The key point here is that the value of the VIX increases as the market goes down and decreases when the market moves up. So if the market trades lower, usually the VIX is up. If the market is up, the VIX trades lower.
May 6, 2008 - 6:39:26 AM
Trading Psychology
Getting Started With Stock Option Strategies
Before you buy or sell options you need a strategy, and before you choose an options strategy, you need to understand how you want options to work in your portfolio. A particular strategy is successful only if it performs in a way that helps you meet your investment/trading goals.
Apr 18, 2007 - 12:30:54 PM
Trading Psychology
A Gambler's Delight: Triple Witching
In case you haven't noticed, the market sure has gotten volatile lately. In a little over a week, the Dow has dropped over 400 on a close, traded below 12,000 for the first time in 2007, and rebounded up 150 another day. With so much news to digest, it provides an opportunity for speculative investments as "gamblers" bet on market direction. These types of trades are not for beginners as the market can be especially chaotic during volatile times.
Mar 8, 2007 - 2:15:00 AM
Trading Psychology
Schwab Survey Says Options are Not Just for Trading Anymore
While options volume has grown at a fast pace in the last few years, an increasing percentage of the trading and investing public is familiar with options and how they function it's still difficult to pinpoint the typical options trader.
Feb 19, 2007 - 10:20:00 PM
Trading Psychology
Allocating Option Trades
One of the most frequently asked questions I get from friends and associates concerns option position sizing and how much to allocate for each trade. This is always a difficult question to answer and one that affects each investor differently.
Jan 22, 2007 - 7:09:00 PM
