As is often the case, there can be a wide chasm between the academics and the actual “boots on the ground” experience. Today, we’re going to travel just a bit off the reservation and discuss why volatility is not the same thing as risk. In fact, we’ll explain why we as traders...
resulting involatilityand increased volume. We will see a decrease in volume after the spike in these situations, but how volume continues to play out over the next days, weeks, and months can be analyzed by using the other volume guidelines.2 ...
Understanding how the VIX and its ETFs work, including its unique risks, is key before adding it to your portfolio. The Volatility Index Referred to as the so-called "fear index," the VIX is commonly used to gauge investor confidence in the market, or, conversely, as a way of understandi...
How to Handle Stock Market Volatility: How Much Market Volatility Is Normal? Markets frequently encounter periods of heightened volatility. As an investor, you should plan on seeing volatility about 15% from average returns during a given year. In one in five years, you should expect the market...
Suppose the United States fails to reach an agreement on its debt ceiling in the short term. In that case, it would cause increased volatility in the international financial markets and inevitably impact the stability of the world economy. Other countries would be forced to suffer the consequences...
In general, it can be more difficult to obtain a loan for your small business than for personal use. “Many small businesses are seasonal in nature and have considerable volatility in cash flows throughout the year. Small businesses also tend to have fewer assets which can serve as collateral...
“Traditionally high risk-high reward investments, like cryptocurrency or growth-focused stocks, offer more volatility for investors. For those looking to take less risk in their portfolios, traditionally safer investments include treasury bonds, money market funds, and “blue chip” stocks that pay ...
These sectors perform differently depending on the phase of the economy. While some sectors may be more receptive to economic growth, others may underperform. "Sector rotation is the process of selling out of sectors when the economic cycle suggests that their sector may not perform well, and th...
Additionally, during a period of market volatility, calculating percentage changes in stock prices allowed me to understand the magnitude of fluctuations and make timely investment decisions. This method has not only simplified data analysis but has also empowered me to confidently navigate dynamic scenar...
Volatility measures how much the price of a stock, derivative, or index fluctuates. The higher the volatility, the greater the potential risk of loss for investors.