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Chuck Hughes - Forget stocks. Here's where the action is now... Even The Best Are Getting Whipsawed In This Market. Don’t Let That Fool You. The Feds announce another rate hike, markets go down. The announce yet another hike, markets go up. Meanwhile, it seems impossible to navigate the chop this is creating to find winning trades. When the markets give you lemons… exploit the volatility. These swings create a climate where it seems more plausible for stocks and ETFs to make big moves. That is the general idea of volatility and why it is a key element to successful options trading. If the overall market is flat as a pancake, it is unlikely any one stock will make a huge move. When they market is making these swings, it becomes more likely for big moves to happen and increases the value of options. Tacking Market Volatility To Sail Towards Winners When there is a strong headwind, sailors will use a process called tacking to make forward progress. It looks like a zig-zag pattern but it moves them forward instead of backward. Even volatility is volatile lately but it is still sitting at historic highs. Using higher volatility to boost value in options is a strategy top traders employ when things are wild. When you understand how to “tack” a volatility headwind in the market, you can find the winners. If you are looking to up your option game with great strategies top traders exploit, you should check out Chuck Hughes’ book he offered earlier today. Here is the link in case you missed it. © 2023 Tradewins Publishing. All rights reserved. | Privacy Policy | Terms and Conditions | Contact Us DISCLAIMER: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading. The information provided by the Legacy Publishing LLC ("Legacy") Trading Services, newsletters and educational publications ("Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Legacy a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Please note that results may not be typical and can vary from person to person. There are inherent risks involved with investing in the stock and options market, including the loss of your investment. Any investment is at your own risk. You should only trade or invest your "risk capital" - money you can afford to lose. | |
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