Volatility is an inevitable part of being an investor in the stock market.
With the internet today, news travels fast. Even the smallest hint of news or macroeconomic statistics can send stock prices on a rollercoaster ride.
Bottom line: it’s not something you can avoid if you invest in stocks.
These rapid price swings can evoke a range of emotions, from confidence to fear, for investors.
When your hard-earned money is on the line, it is natural to feel intense emotions in the face of volatility.
This raises a crucial question: How can investors steer through this turbulence and still come out on top with good investment results?
Volatility in action
You do not have to search far for instances of intense volatility.
When the pandemic emerged and spread globally, major stock market indices experienced significant declines.
Consider the NASDAQ Composite Index.
This leading technology stock index plummeted from 9,732.74 on February 18, 2020, to 6,860.67 on March 23, 2020, marking a...