It is always riskier to trade in a volatile market. If you are ready to take the risk and want to trade in the volatile markets please follow the following tips. These tips will help you to enter and exit the stock market without getting affected from volatility.
Firstly in order to gain from a volatile market watch the stocks carefully its high/lows and start buying on dips and sell it on highs. Do study the resistance and support level; also consider the 52 weeks highs/lows.
Secondly, keep buying stocks in bits and sell all the stocks at once. This strategy helps in accumulating the stocks at a lower average price and selling the stock at higher price.
Thirdly if you are looking for penny stocks than make sure that you buy and hold them for some times. Keep those stocks in your portfolio for some years and sell them when it reaches to an expectation level. This strategy will pay you good returns.
Lastly be careful while you are investing in blue chip companies. They are the index movers and they are respond very fast to rumors and market news which causes volatility session.
In a nutshell vigilance is the major key to gain in volatile stock markets. You should know when to enter the market & when to exit. Investors should set their own targets and exit the market once their target price is reached. They should be careful and should not get victimised by bearish phase.
“Bell the bull says: In a volatile Market keep tracking your favourite stocks and make entry and exist as per your target price.”Google+