I promised to share with you my Top Secret (well it's not secret anymore lol) trade. It is UVXY. As the name of the ETF indicates it is an instrument to trade the VIX.
It is important to note that UVXY is a TRADING instrument - It is NOT a Buy and Hold Stock
This is HIGHLY volatile which is why it is not only fun to trade but also very profitable. I trade this in 100 share blocks. I recommend that you start smaller until you get your strategy down.
UVXY basically trades as an INVERSE to the Dow. Thus, when the Dow goes up UVXY goes down and visa versa. The more volatile the day is the greater the trading opportunities.
I look for times when UVXY goes below $15.00 and then I load up. You will see the big 10 point daily swings in early February, but these will not happen again due to changes that were made to the ETF to prevent that from happening again.
I will then take some of the profits from my day, and swing trades on UVXY and hold a few shares 10-20 and try to hold them up to the $20 level raising my stops all the way.
Take a look at UVXY. It has been my best, and most profitable, trading vehicle since February. Let me know what you think below.
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