Decide which Ones to Buy
While trading volatile, you should avoid investing in stocks, which have already had a great run-up in the last few days. Instead, you should choose the one which has witnessed increasing volumes. This is because, stocks whose prices have risen can experience heavy profit booking, and can come crashing down within minutes.
Decide how much to Invest
Deciding on how much money to invest is difficult because, we are often tempted to invest more to get fast and more returns. At the same time, we do recall the history when such stocks wash off all the money in a few hours. A suggestion would be to invest not more than fifteen percent of your total money in such stocks.
Decide when to Sell
Getting out of volatile stocks at the right time with profits in hand is very essential. It should not happen that, you do not book your profits, and the stocks settle down below your purchase price. For this, careful observation, research, and good reflexes are required.
High-frequency trading has emerged as a volatile option off late. It means the trading carried out with the help of ultra-fast computers with a specific algorithm. Such trading has become volatile due to the risk it presents to the investors. Hence, care should be taken while exercising this option.
Disclaimer: This information is just for reference purposes and does not recommend any stock market transactions.