Understanding Market Volatility and Trading Volatile Days
2 min read-The magnitude of the change
-It is independent of direction, it refers to the change of ups and downs
Why is it Important?
-The more volatile the market is, the crazier it gets
-Trends are harder to spot when they are more volatile
-Swing trading becomes riskier
-It is better to stick to day trading during high volatility days or months because you want to lower your risk on those days
What to do on High Volatility Days:
-Inverse ETFs (e.g. BGZ, SKF, TZA, FAZ)
-They are opposite of the market
-They are more stable than one specific stock.
-Can trade off of 15 minute or 5 minutes charts (day trading charts)
#marketvolatility #tradingvolatiledays #volatiledays #understandmarket #stockmarket
Posted at: https://tradersfly.com/blog/understanding-market-volatility/
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