Volatility is a subject that most people misunderstand and can’t figure out how to make volatility your friend.
Especially when it comes to the markets.
Look how the dictionary defines volatility (in regards to prices, values, etc.): tending to fluctuate sharply and regularly: volatile market conditions.
Ironically (or NOT) the vast majority of investors think it only applies to falling markets – like we’ve experienced in 2022.
But what happens when the markets radically move upward?
Example: In January this year the DJIA traded at 36,231.
But by September 26th it fell to 28,725…over a 20% decline… in a nine-month period.
But from September 26th to November 28th the DJIA went from 28,725 to 34,510.
Ironically (or NOT) that’s over a 20% rise… in only two months.
So, why isn’t that considered volatile?
Making Volatility Your Friend
BTW people get fooled into thinking that if they lose 20% in the market then they should get even when the markets rise by 20%.
But the above illustration proves that’s not the case.
Ironically (or NOT) people tend to think that when their stocks go up it’s because of their genius selection and not because of volatility.
However, when their stocks go down, they blame the crazy volatility on market conditions…or their broker.
If that’s ever happened to you it’s because you bought into what the presstitutes – and talking heads on TV – told you what to believe.
And regarding the presstitutes, you must remember:
- They’re NOT your friend.
- They don’t care about You.
- They read from scripts/teleprompters.
- They report what their Wall Street overlords tell them to report.
- They’re highly overpaid actors who’ve never been in the trading pits.
The list is much longer but I’ll cut it off here.
The point here is, Volatility will smack you around in both falling AND rising markets because humans get caught up in their emotions.
(We have a FREE REPORT on our site that goes into more detail about volatility HERE).
Remember: THE MARKETS DON’T CARE ABOUT YOUR FEELINGS OR YOUR OPINION.”
So, instead of losing during volatile markets learn how to side-step your feelings and make a fortune – when everyone around you is losing – in our December edition of “…In Plain English” (HERE).
Share this with a friend.
They’ll thank YOU later.
And remember: We’re Not Just About Finance.
But we use finance to give you hope.
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