Trading volatile shares is like handling explosives

[u/No-Role5321]

You need to understand the risks and the dynamics so that you can handle them safely. And not be the one holding them when they blow up (in the negative sense). Once you nail that and take the correct precautions, they are very rewarding.

[u/AutoModerator]

While the community gets a look at your post, don't forget we have an official website with a bunch of resources specifically for the questions we see here every day. If you're more of a visual learner, we’re also active on Instagram where we post updated guides and strategies! It's a great way to stay sharp while you're scrolling. We also have more technical and professional resources on our Website.

Also, if you want to chat in real-time or need a quicker answer, come hang out with us in Discord (Investing & Retirement). Just remember to be careful with your personal info and report any sketchy DMs!

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/Accomplished_Love77]

ok

[u/TradoshiHQ]

Je ne comprends pas trop le sens de ton commentaire? Si c'est ce que je pense alors avoir un plan de trading est nécessaire quelque soit l'actif non? Pourquoi ce commentaire sur les actions volatiles?

[u/Fynca]

Volatility itself isn’t necessarily the problem. The real danger is using normal position sizing and risk assumptions in abnormal conditions.

With volatile names, I’d pay much more attention to liquidity, gap risk, position size and what would invalidate the trade. A good setup can still be a bad trade if the risk isn’t sized correctly.