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In Volatile Markets, Use Volatile Tools

Volatile Markets

Stocks are off to a rocky start this year.

The general trend points down. While that can be discouraging, it’s important to recognize that down markets tend to be volatile. The upside of volatility is that there are short-term trading opportunities.

Trading is different from investing. It requires a different outlook. Think about it like this:

  • Investors think about companies.
  • Traders think about stocks.

Traders focus on how the next few days look, rather than considering what the company’s earnings will look like in the next quarter.

That requires different tools.

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