When we first look to start trading, should we trade a single stock of a company we know or a diversified ETF? Tom and Tony go through why we like to start with ETFs!
When, the parameters we primarly look for are:
- Recent price action
- Recent movements
- Potential market moving catalysts
While single stocks tend to have higher implied volatility and more opportunities of, the ETF IV has been historically overstated more often than individual equities. This gives us more of a trading edge in ETFs.
Tune in to hear Tom and Tony discuss why we start with ETFs!