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Volatility in Market from " Pran Katariya" twiter
- Theory says that a high Volatility environment is best for Option Selling while a low Volatility one is highly risky. A few years ago my mentor Seth Friedberg from SMB Capital published a video on the performance of their Prop trading desk and his findings were astounding
- Also a low Vix is generally restricted to Index Option Sellers. Even in a low Volatility environment there are many underlying which offer attractive opportunities. If one is not greedy and has reasonable expectations, this environment is amongst the best to trade in.
- There are many paths to Trading success. It took me about 4-5 years to find a system that suited me and one that I could stick to. However, I continue to look for a system which will help me generate a higher RoC- albeit nowhere near what I see on Twitter. The search continues
- Putting down a few thoughts on my beliefs in Trading and Investing and how I approach both. As far as Investing is concerned, I go with the Warren Buffett school of thought as opposed to the Eugene Fama based Efficient Markets hypothesis.
- The 2 ways around that are to practice sound Position Sizing and follow strict stop losses. Taking unduly large positions in any trade- no matter how high the probability of it's success is suicidal and the stress it creates will effect your other Trades as well
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