Market volatility is defined as a statistical measure of an asset’s deviations from a set benchmark or its own average performance. In other words, an asset’s volatility measures the severity of its price fluctuations. Market volatility is the frequency and magnitude of price movements, ...Read More
Once again, this goes back to the length of time you plan on investing and the amount of risk you are willing to take. If you are in it for the long haul and you don’t plan on pulling your money out any time soon, consider investing the majority of your funds into low-volatility options. If yo...Read More
When deciding to add bonds or stocks to a portfolio, it’s helpful to know that the former is generally a less volatile asset class. As the name implies, historical volatility used past performance to assess present volatility. When a stock sees large daily price swings compared to its history, it wi...Read More
While bear markets have a bad name, they don’t always lead to recession, and on average bear markets are shorter than bull markets. The second step is to know one’s risk tolerance and financial goals, then invest, readjust, and rebalance your portfolio accordingly. Depending on the year, this rise a...Read More
The VIX is the Cboe Volatility Index, a measure of the short-term volatility simple scalping trading strategy in the broader market, measured by the implied volatility of 30-day S&P 500 options contracts. Also known as the “fear index,” the VIX can be a gauge of market sentiment, with higher val...Read More
That’s because with dollar cost averaging (DCA) you invest the same dollar amount each time. When prices are lower, you buy more; when prices are higher, you buy less. Otherwise, you might be tempted to follow your emotions and buy less when prices drop, and more when prices are increasing (a common...Read More
He lives by the famous Munger mantra of trying to get a little smarter each day. The best brokers for options trading can help you get started with options as well as stocks. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the ...Read More
Of course, you want to be on the winning side, and whilst you don’t have the power to affect the markets, you can learn trading volume analysis to mirror those who do. Big players have well-paid market professionals who do understand the markets and make trading decisions with that knowledge, for a ...Read More