this is Ryan hildreth and today we're
gonna talk about the second technical
indicator that I use which i think is
the most important is the VIX the
volatility index
so the ticker symbol on that is VIX as
you can see up here in the right today
we're going to talk about we're gonna
look at the example Facebook and how it
the VIX
is is it measures the amount of
volatility in the market which is fear
right so up and down price action as you
can see let's look over on the VIX over
on the right-hand screen back in 2015
August 23rd 24th oh my gosh it was a
pretty amazing thing to see I've never
seen that that was my first stock market
crash while I was investing and trading
but as you can see right here when the
stock market crashed in 2015 the VIX
went from roughly around 12 to 50 ok so
when the market when the let's just say
Facebook or let's just say the overall
market when the S&P 500 which is a
basket of 500 stocks when the SP 500
goes down the VIX goes up so it's a good
indicator of over pride or over inflated
fear so as you can see when the market
crashed in 2015 the VIX went from 12 to
50 54 and change let's say okay so VIX
went up let's look over here on Facebook
back in 2015 so Facebook was at 100 and
then it went down to about 72 and in the
map
you know three days when the market did
crash no matter of one day it was at 91
and went all the way down to 72 so when
that happens you can see Facebook going
down immensely and then you see the VIX
going up immensely and and this is where
you can I'm not gonna get too deep into
this because this is a really complex
index that is is hard to understand
unless you have experience and time
trading and investing so I suggest that
you put VIX in your whatever your stock
app or whatever you have on your phone
just so you could look over it every day
and you could just see where the VIX is
at relative to the market and when the
market goes down you'll see the
correlation that the VIX goes up so what
I do is I pinpoint certain levels of
where the VIX is at and where the stock
I want to buy is at so if I want to buy
Facebook I know in the last example we
use Disney but I just use Facebook
because it was a cleaner example if I
wanted to buy Facebook I'm not gonna buy
it at the highs of the of the stock I
want to buy in the lows of the VIX it's
just not a good it's not a good entry
point because you're buying high and
then you know that it's high because you
see the VIX is super low meaning there's
a lot of complacency there's a lot of
people are just not afraid that's not
the time you want to be buying you want
to buy when people are afraid when
there's a bunch of fear so if you look
at the VIX when this VIX you know shoots
past 20 you know past 30
you know if the VIX is at 50 sell your
house and you're kidding I'm not gonna
tell you to do that but when you get the
point when the VIX is at 50 you want to
go all-in because your statistical
probabilities of having a good entry
point are
you know this is this was a for standard
deviation move I know that you know you
probably those that terminology is
probably you know just out there it took
a long time to learn this stuff but your
probabilities are higher when the VIX is
high okay so your probabilities of
having a good entry point and you know I
don't want to buy my stocks at a high
price I want to buy them buy them at a
discount so what I do I just look at the
VIX I wait for the VIX to you know get
above 15 20 and then I buy my stock and
then within the next month or two
I made a 5 percent return and that's
only because I bought the dip
I bought low I'm not gonna sell these
stocks I'm gonna keep them over the long
run and just keep adding to them so as
time goes by and the VIX shoots up buy
more buy more Facebook and then you know
VIX comes down your Facebook goes up and
then VIX comes up again
buy more Facebook so it's just it's a
strategy that you can use you can
implement and just kind of tweak but if
you want to learn more I know this is a
complicated strategy but I encourage you
to look at the VIX and just kind of
track it for a week and just see how
it's going look at the 1 1 or 2 stocks
that you want to purchase look at the
VIX and just compare them but I
encourage you to do that
if you have any questions contact me at
Ryan Hildreth's the rh @ gmail.com and i
will be sure to get back to you if you
liked the video please click subscribe
look forward to hearing from you thank
you
#Best Education Page #Online Earning
online earning,make money online, earn money online, online earning, online earning sites,
make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site
Posts
No comments:
Post a Comment