Summary of Investment Strategies for a Volatile Market
Summary of Investment Strategies for a Volatile Market
Profits can be made on fluctuating market prices if the right strategy is used. The key is to choose the right strategy for the right market. Volatile market strategies all have one thing in common: by settling on a specific future price, investors hope to capitalize on upward or downward market trends. Investors use diversification, limit orders, hedging, options, futures, straddles, selling short, and buying on margin to take advantage of predicted changes in market pricing.
What You Have Learned
- Diversification in a Volatile Market
- Tame Volatility with Limit Orders and Stop Orders
- Hedging to Curb Volatility
- Buying on Margin for Leverage
- Selling Short to Take Advantage of a Down Market
- Using Option Strategies
- Straddling Uncertainty
- Capitalize on Future Price Movements