What is volatility in the stock market and why is important for investors?

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What is volatility in the stock market and why is important for investors? Volatility is the measure of how much a stock’s price can change over a given period of time. Now, why is important for investors? Volatility helps us understand the risk associated with an investment. Higher volatility means more risk. Investors use volatility to diversify their portfolios. Combining assets with different volatility levels can reduce risk. Volatility could affect our investment decisions too. When stocks are volatile, emotions can run high, which isn’t ideal. Remember, smart investors stay calm and stick to their strategies! Do you always follow your strategy? Let me know in the comments. Do your research and Invest with PassionForProfit Bye #investing #volatility #stockmarket #riskmanagement #investors

♬ original sound – Federica Montella

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Let me know if you have any questions.

Federica Montella

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