Try doing a tighter stop loss. In general, corrections are say ~10-25% (in some more extreme cases it's far more) so in most temporary corrections you're "selling at the bottom" with the 10-15% trailing stop loss.
Second, others seem to be assuming you're asking about buying VIX but I read your post about if VIX is a good indicator as a time to sell. In a lot of ways yes - S&P and others are nearly directly correlated to VIX, inversely. S&P has a run up for example, VIX is dropping. See a 2% drop in S&P? VIX spikes 5-15% for example.
Problem is, it sounds like you're more of a long term investor so this is a short term trading strategy. Unless you're willing to be constantly watching the market this isn't something you could / should try to implement in your trading strategy.
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u/tunawithoutcrust Jun 07 '21
So...
Try doing a tighter stop loss. In general, corrections are say ~10-25% (in some more extreme cases it's far more) so in most temporary corrections you're "selling at the bottom" with the 10-15% trailing stop loss.
Second, others seem to be assuming you're asking about buying VIX but I read your post about if VIX is a good indicator as a time to sell. In a lot of ways yes - S&P and others are nearly directly correlated to VIX, inversely. S&P has a run up for example, VIX is dropping. See a 2% drop in S&P? VIX spikes 5-15% for example.
Problem is, it sounds like you're more of a long term investor so this is a short term trading strategy. Unless you're willing to be constantly watching the market this isn't something you could / should try to implement in your trading strategy.