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VIX Strategy
By Dr Wealth  •  July 21, 2012
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 ......
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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