Douglas Hvistendahl

Why It's Crucial to Reduce Leverage in Oil

A cautious investor can take advantage of volatility, while also acting against it. I'm not into commodities, but with stocks: once the quality of a company has been determined, my buy bid starts near the 52 week low. If no nibbles, it is raised by about 10% of the high-low difference next month. For companies owned who are at the bottom in quality, with the sales, the opposite pattern is used. Some buys and sells are missed, but it improves the odds of buying low and selling high. The effect of one small investor on volatility is small, but if many followed a like pattern, it would add up.