Our technique of trading small and often lends itself to probabilities and playing a high probability game enough times so that we might see profits in the long run. However, this strategy is also built around product indifference and.
Tom and Tony preach the importance of having diversified underlying markets in their portfolio amid their small and often trading before getting to a study on the subject. The guys look into highenvironments for the stock market, and they look at how trading diversified markets like the Euro currency and Gold can help bolster profits in these volatile times.
The study looks atin the S&P 500, Euro, Gold, and Bonds. We filtered our results for those trading occurrences that happened when was high in the S&P 500. Check out the results to see if diversifying helped or hurt profits when options prices rose.