What is volatility?
Cfefinances
Volatility is the amount of change in a stocks price in either direction. Volatility is normal in a stock market because stocks are always being bought and sold Investors need to understand volatility because if you are selling a stock you want to sell when the market is moving higher, but when you want to purchase a stock you can use volatility to your advantage because bad news in the world is what causes the volatility of stock prices to drop in value.
Think about how much a stock's price swings up and down. It's normal — and you can use it, since bad news that drops prices can create buying chances.