The US Stock Market is a group of US markets and US Exchanges where the stocks of public companies, bonds, and other securities are issued are traded. The major stock trading activities are performed on the NYSE (New York Stock Exchange) and NASDAQ (National Association of Securities and Dealers Automated Quotations) though there are some other minor exchanges that are carrying out US stock trading activities. Both the exchanges NYSE and NASDAQ have listed more than 3000 stocks on each. In addition to these, both have a big row of the Exchange Traded Funds (ETFs).
While talking about the most volatile stocks on the US Stock Market, it refers to the most traded or liquid stocks with a default selection below the average volume of 100,000 shares per day. This means these stocks are highly volatile on both the exchanges NYSE and NASDAQ that could potentially fetch the highest profit, however, simultaneously these stocks are considered as the riskiest on the exchanges. When studying and analyzing these stocks you should strictly keep it in mind that most of those stocks reflect a general market trend and an exclusive technical analysis based on stock screener to that effect can only help you for a decision.
Both the stock exchanges NYSE and NASDAQ list the most volatile US stocks based on past 30-day or 1 calendar month data. Price filter shows average traded price over the past 30 days which helps you to select the price range in which you are interested in. The cheapest stocks, however, are considered the most volatile and not everyone is interested to trade the cheap stocks.
How to manage the volatile markets?
Volatile markets indicate that the stocks markets get choppy. Therefore, under such an unstable situation you should have a bold investment plan and to stick to it. The volatility that triggers the stock markets may evolve in many different forms, which may be policy uncertainty in Washington DC, geopolitical unrest of the region, earnings report, and many endless factors. Most seasoned investors also may fail their nerve on rattling market swings. But, another important thing that you should keep in your mind while investing in stocks that volatility is the part and parcel of investment. And thus, it is worthwhile to reiterate in this article that a bold investment plan tailored on your goal, financial strength, and market understanding can help you to reduce the fear-factor and make you prepared for normal ups and downs of the market and to take opportunities of the most volatile US stocks. Here are some tips to manage the volatile markets.
Keep things in perspective: As uncertainty is certain so downturn is. It is fact that downturns in the stock market may be quite upsetting but it is normally short lived. If you look back to the history of the US Stocks Markets during the past 35 years the market has been, however, factually experiencing an average drop of 14% in the price of the stocks from the high to low during every calendar year. Still, the market provided a positive long-term return to the investors in more than 80% of the calendar years during that entire period. Even during the last 3-year period, the market observed various odds such as a sharp drop in August 2015, in January 2016 China devalued their currency in concurrence with oil prices fall, and after the Brexit vote and US presidential election 2016 the investors rattled in the trading. Despite all these, the market has gone up more than 30% during the last 3-years.
- Stay comfortable with your own investment: If you are feeling unrest and anxiety while the market goes down it is possibly the level of risk associated in your investment portfolio is not appropriately fit for you. Your goals, investment time horizon, and risk tolerance are the major key factors that help you making an investment strategy of your own which can really work for you.
If your investment time horizon is long enough still you should be comfortable to address the short-term ups and downs of the most volatile US stocks. Being too wary may not provide you with the growth potential that you want to achieve only because of your long investment time horizon. So prepare a realistic approach to feel you comfortable even sticking to your long-term investment strategy.
Stay disciplined and don’t play with the market timing: Some academicians don’t believe that time the market may be a possible successful venture to gain from a volatile market. But, some traders strongly believe in market timing. So it can be said market timing, however, whether or not possible is a matter of opinion. Still, what the academicians say cannot be ruled out with blow because the future direction of the stock market, however, is extremely difficult to predict. Not only could that, moving in and out of the market be highly costly. Researches revealed that investors performed worse who took decisions about the time when to buy and sell the funds instead who simply bought and held the same funds. If you could avoid those rattled trading days and invest during a good time, it would be great. But, the problem is, it is almost impossible to predict consistently the time when the good days and bad days will come to the most volatile US stocks. And unfortunately, if you miss only a few good days, it can have a long-term effect on your investment portfolio.
At the end of this discussion, Stock Earnings suggests that if you are in habit to invest regularly despite volatility over months, years, and decades, the short-term downturns in the market will not impact much on your performance. So you develop a disciplined approach to regular investment avoiding the perils of market timing. So it is reiterated that despite focusing on ridding on the turbulent market you should focus on maintaining a sound disciplined investment plan to ride out the peaks and valleys of the stock markets to achieve your financial goals.