August 2012
Beginner
280 pages
7h 11m
English
book
Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best Trades
by Stephen Morris
Content preview from Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best TradesBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
THE INFLUENCE OF VOLATILITY
Regarded as the “Fear Index,” the index of volatility is a technical measurement of the degree to which prices fluctuate above and below a mean, or average. When the volatility is high and the range of price swings widens, investment returns show a greater dispersion than average.
As a result of this, a direct and significant relationship exists between market prices and volatility. As volatility declines, the stock market tends to rise, and as volatility increases, the market tends to fall.
Because volatility has such a direct and strong impact on prices, it is important to accurately assess it on a routine basis. How do we do that?
Hans Wagner offers this suggestion in an article he wrote for Investopedia:
One way is to use the CBOE Volatility Index (VIX). The VIX measures the implied volatility (IV) in the prices of a basket of put and call options on the S&P 500 Index. The VIX is used as a tool to measure investor risk. A high reading on the VIX marks periods of higher stock market volatility. This high volatility also aligns with stock market bottoms. Low readings on the VIX mark periods of lower volatility. The periods of low volatility may last several years and are not as good for identifying market tops. The VIX is intended to be forward-looking, measuring the market's expected volatility over the next 30 days.
Wagner concludes the article by saying:
The higher level of volatility that comes with bear markets has a direct impact on portfolios. ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.