Too much volatility. I will not invest in these kind of stocks again.
Retired, I need to be careful.
5 Likes
Are you serious? (some) volatility is your friend.
If that is the way you feel, then you are correct. You should be investing in different types of companies where the risk/reward is more to your liking.
The Drake.
2 Likes
Embrace the volatility. While my overall portfolio is up mildly today, there are big outliers at each end.
SAM +18%
SKX -21%
So it goes. I’m getting whiplash:-)
DT
2 Likes
Too much volatility. I will not invest in these kind of stocks again.
Retired, I need to be careful.
True volatility can hurt. However, these days even good stocks get hammered if they don’t make enough money for the Wall Street Guys/Girls. I’ve been retired quite a while and have increased my allocations in the stocks that are usually a little less volatile. But, you still, IMO, need a mixture of the more volatile stocks. At least that’s what I believe I need to do to keep my portfolio growing, as I’m no longer adding money to it.
2 Likes
Volatility is bad only if you can’t (or don’t want to) deal with it. Otherwise, volatility is your friend.
http://www.investopedia.com/articles/active-trading/062515/w…
This is a terrific (advanced) book on option trading. Option premiums go up with volatility so you sell them when volatility is high and buy them back when it’s low.
Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg
https://www.amazon.com/Option-Volatility-amp-Pricing-Strateg…
Modern Portfolio Theory (MPT) gave volatility a bad name – unjustly!
Denny Schlesinger
7 Likes