Volatility–a playing game in stock market

There are certain stock investor communities in stock market who feel volatility plays an important role in their profit margin in-fact they like to do stock trading whenever there is significant amount of volatilities in stock market. According to them volatile stock often gives them an advantage to make their stock trading successful. Any significant upward rise in stock which is volatile gives a sell signals while any significant dip gives a buy signal.

Volatility is a significant fluctuation in prices of stocks or swings in stock market. Any significant increase in volatility in stock market concerns a lot of stock investor as it does not gives any perfect direction to stock market but for genuine stock traders it is a positive signal to make money if there is good kind of volatilities in their selected best stocks.

There are many different views on volatility but according to me it gives a good chance for stock trader to become active and make their successful stock trading. Volatile stock shows significant movement in their prices which give chance for stock traders to enter in that stock and exit by making profit. It is a riskier job but for trader it is their daily business part. They know the exact entry point and exact exist point in these type of stocks.

If one has to become expert in trading volatile stock they need to have significant knowledge of stock market as well as has to know how the movements of stock happens and this only can be achieved by consistent monitoring the stock price movement on daily basis. One can use Newton law’s rule while stock trading on stocks which are volatile. According to Newton law’s every action has equal and opposite direction and same law applied to volatile stock also. Every significant upward action in volatile stock should need to have download reaction and every significant downward action in stock should need to have upward reaction.

Any view expressed in this website is solely of author’s personal view. Before stock investing or stock trading you should need to take advice of your stock market advisor.