Volatility can be calming.......
When new investors try to navigate the world news and market reactions there can be too much noise and uncertainty to even begin to take entries or start investing in the stock market. For seasoned traders, volatility is a good thing. It creates volume and large moves in the market that can be taken advantage of. Breaking headline news or off the cuff tweets and social media post can move the charts north and south.
What the new trader needs to understand that the trend is your friend. And changes in trend or tone can present great opportunities to make small or even life changing financial moves.
With the recent war in Iran and fluctuating gas prices the trend became sell and ask questions later. This trend drove down some very popular and successful company's stock prices. These drawdowns presented great entry points and cheap value plays in the market.
With proper risk management and keeping an eye to the grindstone, young investors can dip their toes into the market with enormous upside. To be clear, there are risk in volatile markets, but navigating the waters is key. Keep alert to moving news and headlines, follow the talking heads statements and do you own due diligence.
Short term investments can reap as many rewards as "set it and forget it" long term holdings.