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Volatility (Your Friend Or Foe?) Hint: Friend


Definition Of Volatility

Volatility is simply the degree of variation of a stock price over time as measured by the standard deviation of logarithmic returns.

The Meaning Of Volatility

What does volatility mean to investors?

In general, the higher the volatility, the riskier the investment.

Also, emotion tends to interfere with an otherwise sound investment decision process.

The lower the volatility, the safer the investment.

Volatility Index

Of course, there is a way to track stock market volatility.

The CBOE Volatility Index, known by its ticker symbol VIX, is a popular measure of the stock market's expectation of volatility implied by S&P 500 index options, calculated and published by the Chicago Board Options Exchange. Wikipedia

How To Profit From Volatility

For a disciplined investor, price volatility presents unique opportunities to buy in oversold conditions and sell in overbought conditions.

Due to the emotions of fear and greed, some investors make the mistake of selling low and/or buying high.

Stocks With Volatility

Below is a table that contains stocks that have moved up or down by 5% or more in the previous trading session.

Do you see any opportunities?

You may want to look at stock market movers.