Buying Stocks After a "Boring" Election π
Amateurs think about how much money they can make. Professionals think about how much money they could lose.β β Jack Schawager
The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money tradingβ¦ I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they donβt cut their losses short.β β Victor Sperandeo
Two tradesβ¦
The election is coming up. I would not put these trades on today, by any means but as traders we have to look forward. Prepare for what is ahead.
One you should start thinking about nowβ¦
The Vix.
It is sitting at a 12 handle but that is not a reason to buy it.
Letβs dispel some myths. Everyone is saying that this election does not matter because both of the candidates have already been in office. So, we wont see any volatility. LOL!
Does anyone really believe a US election wonβt have drama? Does anyone believe with the two candidates that we have, that this will go smoothly. No. Look, I am not basing this trade on any fundamentals, I am just saying that there is a case for higher volatility going in to the election. This is very similar to our short term options trade in energy earlier this year. A good set up for an options trade is very rare for me. (For my trading style.)
Keep reading with a 7-day free trial
Subscribe to Against All Odds Research to keep reading this post and get 7 days of free access to the full post archives.