How to Navigate the Volatile Stock Market with a Smart Stock Broker

2 Mins read

The stock market has been an emotional roller coaster at times, especially for individual investors. Nevertheless, the volatility won’t go away anytime soon. Individual investors need to be equipped with strategies and tools to manage volatile markets and grow their portfolios over time. Smart stock brokers are advisors who assist their clients in understanding their risk profile, managing risk exposure points, and growing wealth over time via investments in the stock market or other financial instruments. A smart broker like Joseph Scott Audia is not just someone who can execute your buy or sell order but also an advisor who can help you make informed decisions about investing your money wisely.

Is Volatility Good or Bad for the Stock Market?

Volatility refers to the amount of fluctuation within a given time. Higher volatility indicates more fluctuation, which means the price of an asset (such as stocks) is moving up and down more wildly than normal. Stocks are naturally more volatile than other investments like bonds. Volatility, however, isn’t all bad for the stock market. In fact, without volatility, stocks wouldn’t be able to provide the high returns that they’re known for. So, volatility can be good for the market, but it can also be bad. Investors who are new to the stock market can be spooked by this and see it as a sign that the stock market is risky. In reality, volatility is just a normal part of the stock market and can be a good thing.

Use Automation to Help Monitor Positions

Automation is a smart feature that you can turn on within your online broker account. Whether it is scanning news feeds, scanning your watch list, or monitoring your positions, the more automated your trading is, the less time you will have to spend on it during volatile times. Moreover, it will help you keep track of your portfolio in real-time and track your progress over time. 

Manage Risk with Stop Losses and Position Size

A stop-loss order is an order to sell a security when it reaches a certain price. Investors use stop-loss orders to limit their risk and protect their portfolio from significant losses by selling when the price drops to a certain point. Another risk management tool is position size, which refers to the number of shares or currency units that you own. Depending on your risk tolerance, you can choose to own a smaller or larger position size. If you are more risk-averse, a smaller position size will help protect you from losses if the market goes against you. You can consult with Joseph Scott Audia to take benefit of the volatile stock market.

Bottom Line

A stock market is a volatile place, and as an investor, you’re bound to experience some ups and downs along the way. While it can be tempting to try to time the market and sell during times of volatility, it’s important to remember that the long-term trajectory of the market is upward. That being said, volatility is nothing to ignore. It represents an opportunity for investors to make money by buying low and selling high. With that in mind, it’s important to navigate the ups and downs of the market with a smart broker and risk management tools.

About author
The author, Dr. David K Simson is a trained radiation oncologist specializing in advanced radiation techniques such as intensity-modulated radiotherapy (IMRT), image-guided radiotherapy (IGRT), volumetric modulated arc therapy (VMAT) / Rapid Arc, stereotactic body radiotherapy (SBRT), stereotactic radiotherapy (SRT), stereotactic radiosurgery (SRS). He is also experienced in interstitial, intracavitary, and intraluminal brachytherapy.