Risk-On/Risk-Off Sentiment
Risk-on sentiment describes periods when market confidence is high and investors are willing to allocate capital to speculative investments, whereas risk-off sentiment occurs when fear drives investors to liquidate risky holdings.
Speculating On Volatility
Speculating on volatility involves using VIX-linked products to profit from anticipated changes in market volatility, irrespective of the S&P 500’s direction.
Speculation
Involves traders buying or selling based on their expectations of future price movements, not immediate consumption or production needs.
Trading Psychology Discipline
Trading psychology discipline refers to a trader’s ability to manage their emotions, adhere strictly to a predefined trading plan, and make rational decisions even under pressure.