What is Stock Market Volatility & How to Trade it

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Learn about stock market volatility, how to find the most volatile stocks and the strategies to use when trading them.

The chart below shows the price for the ATA Inc. stock , listed among the most volatile by TradingView as of April 2019, with both the standard deviation and Beta measures of volatility included on the chart.When it comes to volatility and stocks, there is no one set of stocks that are always more volatile than another.

When identifying high volatility stocks, traders can use a stock screener, search the derivatives market, and use third party websites.A stock screener or stock filter is an automated program that reveals a list of stocks that fit certain criteria. To find a volatile stock for day trading, watch a stock you found with your stock screener for intraday movement. If a stock opens down 10% and starts moving, as opposed to staying static, it is being day traded and may be worth consideration.

In addition to macroeconomic themes, don’t forget that single stocks are beholden to microeconomic concerns like regulation, liability and performance of the management. To ward off unforeseeable risks, a trader can explore aggregated stocks through one of theIndex trading is vulnerable to liquidity concerns in times of extreme volatility and crisis. To combat a potential lack of liquidity in a stock market, currency markets can offer a much deeper pool of participants and capital.

 

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