Imagine a heart rate monitor. When the graph is smooth, volatility is low. But when the graph goes wild, volatility is high – and so is the risk.
Volatility is the most common way to measure how a company or industry is performing. The shakier the company, the more movement on the stock exchange, the harder it is to know when exactly to buy and sell. Trading during volatile markets could make your heart race! But that’s all part of the adventure.
Tips and tricks
Check out dollar cost averaging. It could help new investors overcome fluctuating stock.