What is Volatility?
The stock market as a whole moves up and down in value (price) on a daily basis, this movement is based on the upwards/downwards movements of the individual stocks that are listed. This up/down movement is called volatility. Some stocks have greater upwards/downwards movements making them more volatile. The more volatile the stock, the more risky the investment can be, this is because you need to time your buy when the stock is lower in value, and time your sell when the stock price is higher in value.
Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.
Disclaimer: At Evarvest we believe in making investing and investment education more accessible, but we don’t provide investment advice and individual investors should make their own decisions. While we try our best, we cannot ensure the accuracy of the information we provide.
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