Volatility in Stocks - Asher
Asher Forman
Mr. Roddy
IHSS
28 January 2019
This article is very important because it represents the saying, “Every cloud has a silver lining.” What I mean by this, is that even though a stock might go down for a period of time, (the cloud) investors have a chance to reflect on how to make smarter decisions when selling or buying a stock again (the silver lining). Another reason why this article is significant is that it teaches many people not to be crazily alarmed when the stock has a downturn. Like I said in the first paragraph, many uneducated investors will sell when their stocks start to decline. Volatility in a stock makes almost all investors uneasy. The only difference between two investors who are experiencing a volatile stock is how one were to handle the situation. Instead of someone selling their stock which could possibly lose that investor a lot of money, one could use this volatility as a wake-up call to themselves to purchase investments in other stocks. If an investor has all his/her money in one stock, the investor would freak out more if the stock went down. This investor can’t count on other stocks to make him/her any sort of revenue. Although, if the investor had invested in multiple stocks, one might go down, while the others could go up. Now, this investor has the chance to balance the stock that has taken a downfall with other stocks that are hopefully going up. Another reason why this article about volatility is important is that it gives a company a signal that something they are doing is or isn't right due to their stock going up or down. Every day, people are coming up with new ideas within their company. Implementing these new ideas into how the company operates could ultimately show if this idea is successful or not. The way it would show if the idea is successful or not is by the stock increasing or decreasing in price. With this new found knowledge, a company can either change up the idea that doesn’t seem to be working, or keep the idea as it is driving the stock up and improving the company. Overall, these 10 reasons show people and companies who are uneasy with the idea of losing money in volatile stocks, that there is no reason to fret over stocks dipping here and there as one could use this to their advantage to better themselves off in the future and to ultimately make more money (Duggan).
Mr. Roddy
IHSS
28 January 2019
Volatility in Stocks
The stock market can go up and down at any time. When the stocks go down, many people get scared and try to sell their stock because they don’t want to lose money. Although, when the stocks go up, many people think that the stock won’t go back down. This can result in people waiting too long before they sell their stock. Other than the possible chance of losing money, volatility has many good factors. These include reminding investors to purchase stock in multiple different companies, making one realize that stocks aren’t always going to increase in price, allows companies to see what they might have done wrong to drive the stock down, and much more (Duggan).This article is very important because it represents the saying, “Every cloud has a silver lining.” What I mean by this, is that even though a stock might go down for a period of time, (the cloud) investors have a chance to reflect on how to make smarter decisions when selling or buying a stock again (the silver lining). Another reason why this article is significant is that it teaches many people not to be crazily alarmed when the stock has a downturn. Like I said in the first paragraph, many uneducated investors will sell when their stocks start to decline. Volatility in a stock makes almost all investors uneasy. The only difference between two investors who are experiencing a volatile stock is how one were to handle the situation. Instead of someone selling their stock which could possibly lose that investor a lot of money, one could use this volatility as a wake-up call to themselves to purchase investments in other stocks. If an investor has all his/her money in one stock, the investor would freak out more if the stock went down. This investor can’t count on other stocks to make him/her any sort of revenue. Although, if the investor had invested in multiple stocks, one might go down, while the others could go up. Now, this investor has the chance to balance the stock that has taken a downfall with other stocks that are hopefully going up. Another reason why this article about volatility is important is that it gives a company a signal that something they are doing is or isn't right due to their stock going up or down. Every day, people are coming up with new ideas within their company. Implementing these new ideas into how the company operates could ultimately show if this idea is successful or not. The way it would show if the idea is successful or not is by the stock increasing or decreasing in price. With this new found knowledge, a company can either change up the idea that doesn’t seem to be working, or keep the idea as it is driving the stock up and improving the company. Overall, these 10 reasons show people and companies who are uneasy with the idea of losing money in volatile stocks, that there is no reason to fret over stocks dipping here and there as one could use this to their advantage to better themselves off in the future and to ultimately make more money (Duggan).
Work Cited
Duggan, Wayne. “10 Reasons Volatility Is Good for the Stock Market.” U.S. News & World Report, U.S. News & World Report, https://money.usnews.com/investing/stock-market-news/slideshows/10-reasons-volatility-is-good-for-the-stock-market?slide=12
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