One of the most confused concepts and misrepresented concept in Stock Trading. Failing to understand and implement Statistical Volatility and Implied Volatility before placing any trade is a very gross mistake which can result in huge losses that cannot be easily repaired.
“Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” -Warren Buffett
The process of selecting the Options Trading Strategies begin with implied volatility. Key Component in determining an option price is Implied Volatility. Option Price premium is determined with Implied Volatility. Easy way to understand Volatility is that option price and volatility will move in the same direction, keeping all the other things same.
PAPER TRADING IS VERY IMPORTANT UNDERSTANDING ITS DISADVANTAGES IS EVEN MORE IMPORTANT Kindly find the SLIDES BELOW
OUR FAVORITE IS THE LAST POINT WHICH IS ALSO THE BONUS POINT UNDERSTANDING OVERTRADING
Bear Market Caveat The Indian Stock market is Selling at a High Valuations. At the same time, the IndiaVix Index volatility index is showing low readings. Index PE is continuously expanding without a break and earning are not justifying the increasing PE.