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Risk vs Volatility
Views: 314 People often confuse risk and volatility. This confusion leads them to make poor financial decisions. Decisions that will negatively impact their long-term financial situation. Here I will be using terminology that helps me better understand and practice discipline. Volatility By volatility, I am referring to price volatility. Volatility refers to rapid changes in the price of something. Suppose a stock is selling for $10 in the morning, $14 at noon, and $7 in the afternoon. That is volatility. The profitability of the company is not changing that fast. Just the value perception of the stock in the market …
