Over the last few months, rising oil prices have many market participants’ attention. The chart below shows the price of oil, which peaked at the end of October 2021 and then fell about 25%. It bottomed in early December 2021 and hasn’t looked back. Oil broke through the Oct 2021 high of $85 a barrel Read More…
Analysis
Using VIX Indicator to Buy Market Dips
Volatility is an important part of trading. It is related to risk but also in some cases, opportunity. This article will show how to use volatility to get a directional bias in the equity futures market. Volatility analysis is both quantitative and psychological in nature because it uses complex calculations to understand the level of fear and greed in the market.
Market Sentiment Through Futures
The futures market offers opportunities either through trading or analysis. We can find interesting insights from the futures markets which help us understand market sentiment. The COT Report This article will discuss a report referred to as the Commitment of Traders, a weekly market sentiment publication by the Commodity Futures Trading Commission. Market sentiment is Read More…
Independent thinking – A quality to cultivate in trading
We can generally find many qualities in successful traders, including discipline, patience, adaptability, independence, and mental toughness. You can work on several of them simultaneously, but one question remains — which one to prioritize? In other words, which quality should you cultivate the most to become successful at trading? Our answer is independent thinking. It’s Read More…
Understanding Risk-on and Risk-off trading conditions
Risk-on and risk-off trading conditions are fundamental elements of every financial market. They showcase the current market sentiment; in other words, it reveals the attitude and emotion of traders and investors toward particular markets or securities. The price of financial instruments may rise and fall due to economic factors, geopolitics, interest rate adjustments, inflation reports, Read More…
Swing Trading and Day Trading – Which One Is Better?
If you talk to any trader or market expert about swing trading and day trading, they will probably tell you different things. Some of them have had more success with a particular style of trading and like it better. On the other hand, some traders are simply used to trading in a specific way and Read More…