Understanding Market Volatility and Trading Volatile Days
What is Volatility?
-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