VIX
No, this is not a symbol for some Latin number. The Wall Street mavens talk about this market timing device as if they knew how to use it to determine which way the stock market is going – up or down. It is pretty obvious that brokers, analysts and financial planners have not learned the language. What does it mean and can it be used to predict market moves? The VIX is actually a measure of volatility for those who buy and sell stock options think about the market. To make it simple you can find it displayed as a chart on the Internet at www.cboe.com. It measures the volatility of the market calculated by taking a weighted moving average of the implied volatility from eight puts and calls on the S&P 100 index. I hope I didn’t lose you here. Stay with me a moment and I’ll try to make it simple. Every trader is looking for the Holy Grail indicator and recently the VIX seems to be it. Of course, like all indicators it will work until too many use it and then it will fail taking with it the spoils of the market – their life savings. It seems relatively simple to use and therefore attracts novices as well as professionals. When the indicator goes below 30 it would be a time to be short the general market such as the DOW, the S&P or the Nasdaq. When the numbers go above 45, which is supposed to show panic of investors, it is a time to buy. It is an inverse indicator. The lower the number the more complacency of the little investor – SELL; the higher the number the greater panic – BUY. Maybe it has become too simple because there is a sing/song that goes “When VIX is high it’s time to buy, when VIX is low its time to go”. If it were only that simple. Every timing device has its shortcomings. With the VIX the numbers can remain in excessive high and low levels for prolonged periods and therefore cause the trader to experience losses before the desired market movement occurs. Like all other timing methods it is best when combined with other signals such as the 50-day moving average, P/E ratios and other devices. Having been a trader for many years I can assure there is no Holy Grail indicator. The VIX is but one letter in the alphabet of market language. You cannot be successful with one syllable. You must take the time to learn the entire vocabulary. Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. 1-888-345-7870; al@mutualfundstrategy.com
|
Other Trading System Articles
A Common Misconception about Stock Prices I cringe every time I hear a novice investor tell me that they only purchase low priced stocks because they offer higher potential gains. A common phase I hear is “I like to buy $1 and $2 stocks because they can double easily and I will make a 100% profit”.My reaction is to always let these people know that “stocks are priced low for a r ...Straight Talk -- Braces and Adults You're over 30, over 40, or over 50 even and have always wanted to have what you thought was a "pretty" smile. You've seen Pretty Woman several times and just can't get the image of Julia Roberts out of your mind when her Prince Charming climbs the fire escape to claim his Princess. Hollywood has a way with drama but Julia Roberts' smil ...Become Rich From Working Online I am sure most of you have searched the Internet and seen people who have made their million-dollar empire from working online. Everyone tries to become this person by buying up e-books or promoting someone else’s product. I have tried them all. I was and affiliate, I bought tons and tons of e-books on how to create wealth working from home. ...Utilizing Trading Software in Forex market Today's Foreign Exchange (Forex) trading is recognized as one of the lucrative ways in making money online. To trade Forex, all you need is just a computer with Internet connection and an account with Forex broker. As the market is operating 24 hours a day (for 5.5 days a week), Forex traders are basically work freely regardless on the location ...Ever Been To A Pow Wow? Selling today has, in many cases, become like a giant shell game, or what I refer to as the Big Pow Wow. For those of you who haven't got a clue as to what I am talking about, let me explain. Years ago, when the white man invaded the Native American's homeland, they would often bring gifts. These gift exchanges were accomplished with a variety o ...Currency Exchange: How To Use It and What It Can Do For You I can tell you this, this is definitely not a business that will make you rich overnight, so if your sitting there in your lazy chair hoping that you can just throw in $25 and expect to be a millionaire in a week this is definitely not for you!. I CAN tell you this though given a little patients and time you can profit substantially over the l ...Online FOREX Trading – To Be A Success Don't Pay Attention To The News! Can studying the news help you make profits in online FOREX trading? The answer for most traders is a no.In fact, paying attention to the news in online FOREX Trading will lose money. Why? Read on and let’s find out.How and why prices moveIn online FOREX trading (and any financial market for that matter) prices move based up ...Are You Fulfilling Your Destiny? There is something that you are uniquely designed to do. Maybe you are already doing that. Maybe you are not.Let me run some questions past you just to make sure: Do you spring out of bed every morning with boundless energy, eagerly wanting to throw yourself into the day ahead?Does your work fulfill you to the point wh ...Should a New Trader Take a Forex Trading Course or Not? Many new traders come with little or no education to the forex market, only to blow out their entire account in matter of days.Why?Because the have never learnt anything about how the FOREX works, technical analysis, strategy's, traders psychology, chart set up and many other important things you should know before ...E-currency Trading - An Alternative to Futures & Forex Trading I find it amazing that nearly everyday I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This ‘system´ or that ‘method´ has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistica ...Used Car Stereos A car's stereo is the centerpiece of the entire car audio system. In the past few years, many significant advancements in car audio technology have made this segment one of the most exciting. In fact, car audio equipment is the most likely to be replaced or upgraded using an aftermarket unit.What if you are planning to replace or upgrade ...Biker Business.... With motorcycle gang violence again under scrutiny, it’s worth remembering an ominous warning about a biker blueprint for consolidating and carving up territory amongst the strongest clubs to maximise illicit incomes.The warning was contained in a confidential assessment prepared in New Zealand on the activities of the Bandidos and the Hi ...Brief Summary of Forex Trading The foreign exchange market is widely known as "Forex". Here brokerage firms and banks are linked over an electronic network. This network enables them to convert the currencies of countries all over the world. It is the largest and the chief liquid financial market in the world. Dollar volume of dealing of currencies daily goes beyond $1.9 tril ...Forex Day Trading Systems Usually, we associate trading with purchasing a commodity, bringing it home or to our business premises, and then selling it. Similarly, we purchase stocks and shares in the stocks and shares market, hold them until their value increases and then sell them off.Times have changed, and now trading can be done on a daily or even hourly basis ...Trading Forex with Pivot Points Pivot Points are calculated on the previous days move and trades are entered when the market hits a support or resistance line of the pivot point providing your OB/OS indicator is in agreement. All the support and resist lines are put in place 1st thing in the morning. then you wait for the market to hit those entry Points.Contrary to wha ...Trading Is Not Rocket Science! Despite what some people may lead you to believe; day trading, swing trading and trend trading is not anywhere as difficult as they would like you to think. It really boils down to two key components.First, you have to have an approach that helps you identify trades that have a consistently high probability of making money. Once you hav ...Protectionism First let’s see what protectionism is. According to Mr. Webster it is the advocacy, system, or theory of protecting domestic producers by impeding or limiting, as by tariffs or quotas, the importation of foreign goods and services.That sounds pretty good. It is something that will protect the jobs of our workers from goods that can be pro ...E-gold Scams And How To Protect Yourself In the past one year e-currencies especially egold have become very popular in Nigeria. E-gold is an electronic currency backed by real gold stored up in a bullion somewhere in the United States and accounted for by weight. E-gold was established by Douglas Jackson in 1996.E-gold is used as a medium of exchange on the net. Many businesses ...The Secret Method to Selecting a Winning Trading System Every successful trader has a winning system. There are of course, as many systems out there, as there are traders. Some systems get you to buy on strength and sell on weakness others do the opposite.Some investors succeed as value investors , a la Warren Buffet ; others make their millions in moment ...The Secret Art of Backtesting If you have not back tested your trading system, you might as well trade with your eyes close. In fact, whatever technical analysis criterion you use to trade with, be it moving averages, candle sticks, volatility breakouts, fibonacci retracements or any other trading system you have devised you're going to need to back tes ...Levee System Coatings to Help Environmental Remediation Now that we have drained the water out of New Orleans and into Lake Ponchartrain; we must figure out how to fix the environmental problem we have created there by pumping the pollution and toxins into the Lake. Lake Pontchartrain is an eco-disaster after draining the Soup Bowl of chemicals, sewage and debris from New Orleans in the aftermath of ...An Introduction to Forex Trading Foreign Exchange or FOREX Trading has existed for as long as merchants ventured to new lands hundreds of years ago and traded with their counterparts.It is only since the latter part of the 20th and the beginning of the 21st century that faster and more efficient ways of trading via the Internet have evolved.Forex trading online ca ...Choosing A Forex Trading System - Part 4 In the last part of our series we explored a few key performance measures to help us in choosing a Forex trading system.Here’s our example:Let’s take another look at our example:Trading System A PerformanceNumber of trades = 1000 % of Winning trades = 92% % of Losing trades = 8% Average Winning trade = ...Dutch Auction - Every Mans' Capitalism - The Essence of Fairness The Dutch auction, also known as a descending price auction, uses a bidding process to find the optimal market price for the stock, the highest price at which an issuing company can sell ALL the available shares.An alternative to the traditional negotiated pricing process used by Wall Street investment bankers to set the price of a corpo ...Trading Psychology - Adopt the Right Mindset for Big Profits! The fact is the majority of traders lose because they cannot control their emotions. Trading psychology is one of the keys to investment success.A simple fact will illustrate the influence of trading psychology:Why the majority of traders loseThere is one statistic that has remained constant since the beginning of investment ...Natural Dental Care: Keep Your Mouth Clean the All-Natural Way So you think you need harsh chemicals to fight gingivitis, bad breath or tooth plaque? Not so! Natural therapies for oral hygiene can boost your gum disease fighting power both inside and out. Let's examine a few of the most popular natural therapies used today.Herbal Natural Therapies for Oral HygieneCertain herbs have anti ...Stock Trading Systems You can’t make money in the market unless you take a serious approach to trading. To achieve substantial returns on a regular basis, you have to choose a stock trading system that has passed the test of time.First, let us find out what a trading system means. It is a group of specific parameters that determine entry and exit points for a ...Put Your Stock To The Test Before You Invest - Part 2 In our last segment we introduced several types of stock market research. In this segment we will follow up our discussion of technical analysis and then continue on to fundamental analysis.Technical stock research has become popular over the past several years, as more and more people believe that the historical performance of a stock is ...Forex Software - Choosing the Best When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital w ...Water Pollution Problems: A Real Issue Water pollution has always been a major problem to the environment. With industrialization in major areas and urban cities growing the water around them just keeps getting polluted. The sad part about the whole ordeal is that water pollution can be prevented in a lot of cases.A lot of water pollution is caused by factories near rivers a ...How You Could Take The First Step To Become Financially Free Like the majority, I have been working very hard each day believing that the harder I work, the more money I would get. I would bust my proverbial butt out working year after year slaving away for BOSSES who show little sign of appreciation, to earn a paycheck that could hardly pay my bills.After some trying and tiring years, I realized t ...Online Commodity Trading The system of fortnightly accounts is quite handy for a speculator or short-term operator in online commodity trading who buys in the hope that a price decline in the short run will bring him profit, or who sells in the hope that a price decline in the short run will bring him gains. If he buys commodities at the beginning of an account period, ...Technical Analysis: What You Need to Know Before You Look at a Chart What is Technical Analysis? Technical analysis is the study of price data and statistical indicators that are formed by market activity. Market activity illustrates the flow of supply and demand. This supply and demand is a reflection of beliefs and opinions translated into human behaviour and specifically, herd mentality. Therefore, ...Investing In Foreign Currencies - The FOREX Building a diversified portfolio gives you a lot more stability with your investments and enables you to keep on the profit side of things more easily. But if you already have a rather diversified portfolio and think you are now rather knowledgeable of the stock market, then you may be ready to expand your investments into FOREX - the foreign ex ...
|
