What is Volatility?
-The magnitude of the change
-It is independent of direction, it refers to the change of ups and downs

Why is it Important?
-The more volatile the market is, the crazier it gets
-Trends are harder to spot when they are more volatile
-Swing trading becomes riskier
-It is better to stick to day trading during high volatility days or months because you want to lower your risk on those days

What to do on High Volatility Days:
-Inverse ETFs (e.g. BGZ, SKF, TZA, FAZ)
-They are opposite of the market
-They are more stable than one specific stock.
-Can trade off of 15 minute or 5 minutes charts (day trading charts)

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21 COMMENTS

  1. So market volatility means less buyers or sellers in the market so the gaps are empty with no people to trade. What do you think on this. So is volatility in the market may be due to the countries budget or any annoucement. How it works??

  2. I'm gonna tell you what the deal is:The big $ Trump haters are churning . Trump wins election leads to momentary downturn. Then dow goes on major run until right before the State of the Union then it goes down in a major way and now it's up and down. Today (6/26) Dow's up a little before noon (CT) then runs up to almost + 200 and then ends the day down 98??? For what?It seems over the past few months many downturns start around noon central time. Is this when left coast liberals are getting out of bed and calling their man to sell. I don't put anything past these one worlder Soros minions.

  3. Amazing videos, Sasha, super-insperational stuff! =D

    Here is something slightly of topic I'm been thinking about though: assuming you don't borrow money, or trade on margin or do any other risky stuff like that – could one, as a trader, ever lose more then 100% of the money you invest in a stock?

    Say, for example, that a company has a big debt on them. Would one, as investor, become responsible for paying that debt if one invested in that company?
    Or, are there any situations where one might have to pay tax on one's investments, even if one has only lost money on every trade?
    (not the most positive mindset, but hey! It's always safer to know what the worst case scenarios are)

  4. Really good Sasha. On day trading – you get in on a stock – it's seems to be doing well so you decide to set a trailing stop and move onto something else. What % do you like? Especially on a high volatility day? Just a quick opinion would be cool. Thanks Sasha!

  5. Thanks Sasha, you are super helpful. Do you have a video that has a brief intro of urself in terms of how long u been trading stock and what you do and what schools are really good in finance? 

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