Rules that I follow in Volatility Trading
Since I am in the Volatility Trade (and that too on the short side), here are the rules that I follow:
• Never overextend
• Always keep 50% cash
• Try to think long term and hold UVXY shorts for a period of 10 years
• Look long term and hold SVXY investment for a period of 10 years
• Step away and don’t trade when the headwind is too much. The possibilities of doing wrong trades and suffering huge losses are higher when one is stressed out because things are going against me.
• And finally I follow a strategy for my investments – in this case, the 50-30-20 Strategy for Trading Volatility. When I follow a systematic approach, the chances of making errors are much less.
Thanks and Happy Shorting Volatility
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The material in this newsletter, the website http://IndexInvesting.xyz as well as in the book "Trading Volatility - Using the 50-30-20 Strategy" is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.