Trade stocks by volatility?

Question

If you trade stocks JUST by volatility (on any exchange) HISTORICAL PRICES and HISTORICAL VOLUME are not as important as CHART TREND?

Answer 1

It's a big mistake to trade stocks based on volitility. Instead, trade options. A highly volatile stock could go either way. But, with options you can cover both directions and make money if the stock goes up or down. Also, since options use a time stop rather than a normal stop, it literally doesn't matter if the stock moves against you, even by a large amount, before it moves in your favor.

Answer 2

And I need to ask out every female that has lots of blonde hair, right?

Why is it volatile? I recently did a check with zacks.com and their list. They supposedly target companies that have big announcements, the news attracts interest and interest increases stock sales and you can supposedly ride the waves of stock market interest. Lots of those most interesting stocks went down and while on the average I would have made money from the stocks that went up and those rebounds when those that went down bounced back in correction. The question always is why?

If I were to simply go by history then Springfield Buggy Whip and Claremont Corsettes would be the going thing. I put some money in Intel after good news of greater earnings. I did the same of Corning because of the popularity of their very thin glass for widescreen TVs. Both dropped dismally, abnormally. I lost even though my facts were clear and correct. They did turn around, and they did regain it all and much more. The market was doing far more things than simple facts would simply suggest.

Don't bet the farm on your formula.

Answer 3

If your investing in a stock or mutual fund and hold it for less than 10 years then you should be very scared of the volatility. Then again, if you leave everything alone and live your life and check on your investment after 10 years you are more than likely going to make profit assuming that you were careful in selecting your investment. Good Luck.

Answer 4

comparing implied volatility with historic volatility grants a demonstration of no count if extrinsic fee is abnormally extreme. a number of those circumstances ought to be the run as much as earnings launch.

Answer 5

Volume is definitely impt..

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Answer 6

Volatality is important to scalpers, or frequent day traders. It is not important for long term investors

Answer 7

True

"The trend is usually your friend", until it isn't.