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I'm going to share a quick pro trading secret with you today. Don't worry – I won't get kicked out of the elite traders' club for sharing it, but you'll definitely impress your friends if they get a look at your account balance.
The Chicago Board Options Exchange Volatility Index, the VIX, has been pretty hot this year, running anywhere from 12.1 to 25.4. It didn't dip below 15 for all of August. What's that tell you? That the market's moving more than usual! What I mean is that moving up, down, all around – it's enough to send most investors into a tailspin.
There's no reason to expect that turbulence to subside for the rest of the year. Geopolitics, seasonality, trade, the economy, and even the president's Twitter feed will keep the VIX action hot.
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In other words, strap yourself in – because it's going to be a volatile three months to round out the year. Above all, don't be scared. Remember my Eighth Commandment of Trading: "Volatility is a trader's best friend."
That's right; as traders, we need volatility because a market that's moving means a market full of opportunities.
So that you're better able to capture every single one of those chances, I'm going to show you a tweak pro traders use when markets get chaotic.
It'll take you about four seconds to get the hang of this – and even less time to see how powerful it is. You can start using it immediately to spot chances and rake in profits at a time when, typically, slower traders are giving their profits back to Wall Street.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.