Volatile markets are great for the day traders. They offer great opportunities to make money, but as a trader you have to be watching the market movements on a minute by minute basis. Not everyone has the time or the risk tolerance to invest this way. Sometimes it’s better to play things safe during highly uncertain times.
Truth or Fiction
Markets move based on news, true or not. When the news isn’t true or isn’t decisive the markets tend to move more because of the uncertainty. Uncertainty leads to speculation, speculation leads to higher volatility which leads to an aggressive intake of pepto-bismol, tums or any number of vices to calm your nerves.
We have recently seen the market uncertainty due to political unrest in the middle east, and the natural disaster and nuclear uncertainty in Japan. The news headlines start to control the markets reactions to how things are viewed. Continue Reading…