With the level of uncertainty in the air it is a wonder we are experiencing such near record low volatility on Wall Street. Is complacency to blame for the calmness on Wall Street? Have we become so used to unsettling news and political turmoil that it’s now the new normal? How do we explain the high performance we’re seeing with the unprecedented news we see regularly? We can’t turn on the news without hearing about Russia, North Korea, Climate Control, Healthcare and many other globally important issues.
This type of news typically affects the market in some way, although investors reactions to current events are also unprecedented. Have we become so desensitized to political turmoil that we are complacently enjoying the high returns we’re seeing today? If that is the case, there are some concerns that investors will be ill-prepared for an inevitable shock to the market.
Historically, low volatility is good for markets, but sooner or later something’s got to give. Usually, when the VIX is high, the S&P 500 is low, which could be a good time to buy. When the VIX increases, the S&P 500 typically decreases. If the VIX increases too quickly, however, investors show concern that the market will continue to decline and people begin to react irrationally. This fear factor makes it difficult to trade during market volatility.
Trade with Confidence During Low or High Volatility
Great Point Capital is a selected team of professional, experienced traders. An experienced trader will know how to react, or not react at all to events that could rattle a new up and coming trader. Hone your strategies and work with an experienced team on our unique intra communication software platform. Experience the sophistication of Takion trading platform for superior performance catered to your trading style. .
Having a stable trading platform is always important, but having the right software to handle increasing quote traffic when volatility returns will determine whether you can take advantage of the trading environment or get swallowed by it. Experience the sophisticated trading platform of Takion for superior performance based on your unique trading style. Great Point Capital is a member of FINRA.
Great Point Capital has been serving the trading community since 2001. Our 100+ prop traders actively trade the firm’s capital, specializing in equities and equity options. We are one of the very few firms able to offer access to Takion Software Platform, enhancing your trading performance. To earn to your maximum potential in times of low or high volatility, contact us today to speak with one of our knowledgeable staff.
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