Volatility trades can be incredibly profitable if you know what you're doing. Consider the following pattern: high volatility always drops, given enough time. Think about this for a moment and realize that this pattern has worked every single time in the history of the stock market! I can't think of anything else that even comes close to that kind of perfect track record.
A winning strategy every trader should know
The core of this strategy involves making a protected bet against volatility when it's high. Why? Because high volatility always goes down, given enough time. That's what makes this such a powerful strategy. The ETFs that track volatility also have extremely steep decay profiles. Since we're betting against volatility, this gives us an additional edge. That gives us a strategy with 2 extremely powerful factors working in our favor.
Maximize Leverage and Safety
This course will take you from beginner to expert on volatility, the VIX, and the ETFs that track it. We'll also go over what to watch out for and some of the techniques I use for setting up volatility trades the right way. If we plan our trade setup properly, and manage our risk aggressively, we should be able to win every single trade we make. We also want to maximize both leverage and safety. I'll show you how.
Peter Titus graduated from the University of Wisconsin- Madison with an engineering degree in 2003. He has been actively trading stocks and options since 2006 and has been building automated trading systems in Excel using Visual Basic for Applications (VBA) since 2009. He specializes in day trading stocks and ETFs.