Chapter 3
The Objectives of Vibratrading
Vibration trading, or vibratrading, is the extraction of oscillation profits resulting from price fluctuations. In essence, it is the conversion of vibrational energy into fiscal energy. Unlike the conventional approach of just relying on the trend or direction of price in order to extract profit, in vibratrading we also focus on extracting profit from price vibrations. The main advantage of this approach is that we do not need price to move in any particular direction in order to profit, as long as price continues to fluctuate.
The vibratrader derives profit in four ways:
1. Capital Appreciation
2. Oscillatory or Vibrational profits
3. Short Option Premiums
4. Stock/ETF Dividends.
You profit from capital appreciation if there is a rise in the price of your ETF or commodity. But in the process of waiting for price to rally, you may also derive consistent returns in the form of vibrational profits. By employing specific short option strategies, you can further add to your oscillation profits and transform the entire vibrational construct into a true non-directional trading methodology. Finally, you may also derive some passive returns in the form of dividends.
Nevertheless, the main purpose of vibratrading is to establish a basis of consistency in the extraction of returns from the market, regardless of the current value of invested capital. To reiterate, the primary goal is to continue to extract returns from the market indefinitely, ...
