Edge of buying the stock market dip

[Trading Education Buyer]

Buy stock market dips manage risks with options , and you will make a lot of money

https://www.elitetrader.com/et/threads/how-to-trade-index-futures.304176/page-2#post-4361431

Use options as xample

technical analysis dax signal


technical analysis dax signal

 

[FreakofNature]

You forgot to say, pre-requisite: bull market.

 

[Trading Education Buyer]

You forgot to say, pre-requisite: bull market.

The Indexes are well supported , how often do you get bear markets?Most of the time the markets are down 5% to the monthly lows , then they pull back to the peak of the range in the following months.

The secret is to manage risk , with options etc even in a bear market.You don't know which of your dips is going to be a bear market begining.

 

[Trading Education Buyer]

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=buying stockmarket dips

What is 'Buy The Dips'
"Buy the dips" is a slang phrase referring to the practice of purchasing stocks following a decline in prices. After a significant dip in the price of a security or stock index, investors should increase positions or purchase different stocks to capitalize on what is seen as an eventual upswing.

 

[FreakofNature]

The Indexes are well supported , how often do you get bear markets?Most of the time the markets are down 5% to the monthly lows , then they pull back to the peak of the range in the following months.

The secret is to manage risk , with options etc even in a bear market.You don't know which of your dips is going to be a bear market begining.

Does not has to be bear, can be range and you underperform.

 

[Jones75]

Buy stock market dips manage risks with options

Those are good numbers, congrats.
I operate somewhat similar, using long put synthetic straddles on higher beta, and robust vol stocks/puts and find profits far exceed losses.
Downside: stock starts to go sideways and now stuck holding for longer than estimated, and then put starts to deteriorate.
Conclusion is same as yours, upside far out weighs the downside.

 

[Trading Education Buyer]

Does not has to be bear, can be range and you underperform.

option volatility is priced 50 % put 50 % call , you can make 50 % buying only calls

You really are freak of nature

 

[Trading Education Buyer]

Those are good numbers, congrats.
I operate somewhat similar, using long put synthetic straddles on higher beta, and robust vol stocks/puts and find profits far exceed losses.
Downside: stock starts to go sideways and now stuck holding for longer than estimated, and then put starts to deteriorate.
Conclusion is same as yours, upside far out weighs the downside.

I only trade index futures , this is to their narrower range than stocks.Stocks can have huge movements , just have to be careful.

 

[Trading Education Buyer]

Does not has to be bear, can be range and you underperform.

sell some options and get premium decay edge

technical analysis dax signal

 

[Trading Education Buyer]

https://www.elitetrader.com/et/threads/the-edge-of-premium-decay.304909/