The Index Trading Course

Indexes help investors make sense of what is moving higher, what is moving lower and what is simply not moving at all. An index gauges the performance of a group of stocks, rather than shares of just one company. Some indexes are designed to track entire markets, such as Japan’s Nikkei or Germany’s DAX Index. Other indexes are used to track very specific areas of the equity markets, such as the PHLX Bank Sector Index or the AMEX Airline Index. As we will see, many of these indexes can be used not only to track the performance of the stock market, but also to trade the market using futures, exchange-traded funds, and options. Prior to putting money on the line, however, traders should understand the investment vehicles well. Successful index traders share many things in common, and two of the most basic are an understanding of their trading vehicles along with background knowledge about the index market. This is the purpose of the first few chapters of this book—to provide information about index-based securities along with their corresponding markets. In later chapters, we’ll introduce the technical and fundamental tools that trigger trading actions.

A Look Back 

The Index Market Today

Trading the Market

Understanding Options

Basic Strategies Using Call Options

Basic Strategies Using Put Options

Complex and Advanced Strategies 

Catalysts

System Trading

Getting an Edge with Indicators

Sector Trading

Tracking and Trading Volatility 

Making Adjustments 

Risk Management

Important Index Facts and Strategies

Getting Started

Important Tables and Lists

Focus on Technical Analysis

Option Strategy Reviews