A supposed "golden rule" of investors is to move away from any market that has volatility. Maybe it is time to think again about that.
Moris Beracha.- A supposed “golden rule” of investors is to move away from any market that has volatility. Many investors consider that it is the greatest risk they face in performing their professional work. Maybe it is time to think again about that.
Volatility is the measure that indicates the frequency and intensity of changes in the price of an asset at a specific time. While a volatile market has risks, such as a fall in prices and the generalized nervousness of players that reduces the ability to make logical decisions and predict future behavior, it also offers good opportunities.
An experienced investor, able to remain calm in situations of high stress, can take advantage of this scenario to buy assets at a low price that then will increase their value. Of course, I know it is easier to write than to do it in real life, but the purpose of my post is to make us rethink certain strategies we take for granted.
And not just about stock exchanges. Because volatility, in markets and in real life, also offers benefits: either a higher return on investment than expected or agitation, the call of attention needed to reconsider our way of acting.