How to Read Between Stock Price Volatility Lines

Submitted by
on March 25, 2008

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Classic technical analysis of a stock market uses years and months as units to time. Electronics and satellites are swords with two edges for stock investors. You are fascinated at first by real time stock price movements. Then you make some gut-wrenching day trading losses. You can learn to handle the stock market like a deck of poker cards. The tricks become easier with regular practice, and you begin to beat the dealer.

Start with time zones. Japan will do tomorrow morning what NYSE has concluded this evening. Hong Kong, Seoul, and Mumbai will follow suit. Only the Fed has more influence on stock price volatility around the world. You can deal with this by operating like a jumbo jet pilot-sleep and work on a 24-hour format.

Every stock that falls steeply will rise again. Not always the full distance, but the stock market tends to exaggerate. Short and long stocks when price movements are excessive. Simply wait for the surf to settle down if you do not have the stomach for derivatives.

Track sovereign wealth funds and private equity. Executives in banks may trade and invest irresponsibly with your cash, but there is no goofing around with a Buffet or a Sheikh presiding over a stack of trading screens. Just do as a stock market Guru.

Take a course in stock trading from the Chicago Board of Trade. These original pork belly champs are astrologers of the stock market galaxy. They talk of grain, animal feed, and such down market stuff. However, you can apply their methods to the most snobbish stocks around.

We are more in to stock investment than day and online stock trading. Please write for us if you are an authority in derivatives. Every member of our community will welcome your expertise in dealing with stock market volatility. All you need, to get started, is to click on the link: Submit an Article

 

 

 


 


 

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