I recently wrote about my Stock Market Trading strategy using the VIX Index. As regular readers know I am holding 3 months and 6 month calls at the $13 strike on the VIX Index. The 3 month calls are May and the 6 month are July. The capital I use with this Stock Market Trading strategy is capital I can afford to use. I would never use capital that I cannot lose in this Stock Market Trading VIX Index strategy.
Stock Market Trading Strategy Is Speculative
This Stock Market Trading strategy is speculative in nature and not based on the quality of the underlying asset, but based on prediction of where the market volatility may be. The overall belief is that there will be periods over the next 3 to 6 months when volatility will spike and this trade will be quite profitable. But as explained in this latest update for FullyInformed Members,there is no guarantee in any investment particularly speculative ones, that they will work out. Hence the term, trade at your own risk. You must use your own judgement with this Stock Market Trading strategy and determine if it suits your temperament and investing style. I enjoy one or two speculative trades each year. The VIX Index Strategy has been one I have used for many years while this year I have selected Facebook Stock for my speculative trading. Investing is meant to be fund and enjoyable, but aside from these two speculative trades, the rest of my stocks are based solely on technical analysis and stock and company fundamentals.
Stock Market Trading Questions Answered
This latest update answers questions from an investor who wrote to ask when I thought it would be best to enter this Stock Market Trading strategy and what my outlook was for the VIX Index. FullyInformed Members can can login directly through this link to read the rest of this strategy article or Members can sign in to the full members site here. Non-members can join here.