To the noobs,
How is the volatility getting on to you?
We have not have so much fun since Jan 2016.
But in this post, let me talk about volatility itself?
What causes it?
The truth is volatility is caused by the action of trading itself: millions and millions of people buying and selling stocks everyday across the globe. [ I read this somewhere a long time ago in one of my finance text book ].
If there is no volatility, it means that there is no trading activity and if there is no trading activity, that means there is no opportunity for profit.
Think of countries like Mozambique, Paraguay, Uruguay, Cuba etc... they may have stock exchange but there is hardly any trading and that means that there is hardly any volatility..... Yes!, it is a flat line. Does such a stock exchange interest you?
Therefore, you see, volatility is part and parcel of investing: Embrace it, understand it... and then profit from it.
Xuzen
" May the odds be ever in your favour "
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