Connors Research Traders Journal (Volume 17): Trading Fear and Greed – Your One Hour Webinar Recording Plus 44 Slides of Trading Knowledge
In this issue of the Connors Research Traders Journal I’m sharing with you a one-hour webinar I conducted last Friday where I taught the key principles on how to best take advantage of fear and greed in the market. You can gain access to it immediately by clicking here.
Before we do, I’d like to let you know that I just completed a new book which is available now. The title is Buy The Fear, Sell The Greed – 7 Behavioral Quant Strategies for Traders.
My new book quantifies fear and greed in money managers, investors and traders. We’ve developed a number of quantified strategies around those high probability trading opportunities. The edges in the book are high – a number of the strategies have been correct well over 90% of the time in predicting prices in stocks and ETFs. As you know, fear and greed is inherent in the market place and when it occurs, substantial opportunities exist for you.
If you would like to learn more about the new book, you can do so by clicking this link.
Let’s now look at Friday’s webinar.
- When does fear and greed best exist?
- Which indicators are the best to identify fear and greed?
- How to take advantage of the fear of loss from traders and money managers when they panic.
- How to take advantage of the Fear of Missing Out (FOMO) which takes prices to levels where the unrealistic buyers have been wrong the majority of the time. These times provide you with you high probability opportunities to be on the other sides of these irrational buyers who overpay over 70% of time.
- Using the times the media over-reacts (and this is often) to time your entries. These times have been correct the large majority of the time since 1993.
- How to know when market bottoms are made and are likely to reverse.
- Why VXX was built to go to zero and how you can climb aboard on the short side as it declines. Plus how to best put on these positions in order to limit risk while potentially achieving asymmetrical returns.
- The best types of fear that create high probability trading edges including the edges created from multiple days of sell-offs, the edges created from overnight fear, and the edges created from intra-day panic (these are the best edges and supported by years of historical test results).
Enjoy your trading!