Is high volatility good or bad ? Is it better than low volatility ?

Is high volatility good or bad for investor ?

Is high volatility of a security better than low volatility ?
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31 Jul 2021 at 05:14 PM
The high volatility can be good or bad. As volatility increases, there is a potential to make more money quickly. On the other side, higher volatility also means higher risk. In other words, there is an opportunity to make more money in relatively short period of time, but the investment is considered to be more riskier.

Low volatility investments are considered to be less risky, because prices stay relatively stable. There is not an opportunity to make such a big amount of money in short period of time, but investor usually takes a lower risk.

Whether is better high volatility or low volatility depends on investor's individual preferences and expectations. Some investors prefer to invest to high volatile stocks, other investors prefers low volatile stocks.

Before investing the money, you have to know what have impact on your investment (market) and what do you expect from it.
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02 Aug 2021 at 03:06 PM
Ben
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