So, I got a notification on how the market (stock) is currently volatile. I opened the news and learnt a few things about volatility and how to take advantage of it.
What does volatility mean?
You can’t make money in financial markets without prices moving. The degree to which prices rise and fall is called the market’s volatility index. Price volatility offers a way to measure the range of potential returns when talking about a security or market index. Most of the time, the riskier the security is, the higher its volatility will be. In other words, if the stock market is rising and falling significantly over time, it would be called a volatile market.
Although Powell's comments sparked volatility in afternoon trading, the major benchmarks eventually stabilized to close higher on the day. The Dow Jones Industrial Average added 0.8% to 34,156, the S&P 500 gained 1.3% to 4,164, and the Nasdaq Composite rose 1.9% to 12,113.
Read more at:
https://www.kiplinger.com/investing/stocks/stock-market-today-020723-volatility-picks-up-after-powell-commentsHere are some ways to take advantage of market volatility.
. Put safeguards in place to manage risk.
. Look closely at trending stocks.
.Play a short-term game.
Read more at:
https://gocardless.com/guides/posts/what-is-market-volatility/What are some factors that you know that affects market volatility? let's discuss.
