We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. ~ Warren Buffett

The crowd is always wrong. Majority of the investors lose money because they buy high and sell low. This is a result of making investment decisions based on greed and fear. We are all emotional beings. Is there a strategy where we can keep our emotions at bay and act contrary to the crowd?

The Volatility Index (VIX) forecasts the future volatility of S&P 500 based on past price movements. It is commonly known as the fear index where an increase in VIX indicates a sell off in the S&P 500. If VIX is an indication of fear, are there practical means to exploit it for buy and sell signals? Being a derivative of VIX, does it lead the S&P 500 index? My initial exploration on VIX and …