{"id":7385,"date":"2022-11-28T09:15:23","date_gmt":"2022-11-28T03:45:23","guid":{"rendered":"https:\/\/bltpindia.com\/wordpress\/?p=7385"},"modified":"2022-12-19T00:38:11","modified_gmt":"2022-12-18T19:08:11","slug":"is-volatility-your-friend-or-foe","status":"publish","type":"post","link":"https:\/\/bltpindia.com\/wordpress\/index.php\/2022\/11\/28\/is-volatility-your-friend-or-foe\/","title":{"rendered":"Is Volatility Your Friend or Foe?"},"content":{"rendered":"\n

Nowadays we are experiencing that the #Market<\/strong> is heading up and down frequently resulting in up and down in the portfolio #Valuation.<\/strong><\/span><\/p>\n\n\n\n

First of all, we will discuss what #Volatility<\/strong> is. There is a big misunderstanding that volatility means downfall. Whenever the market gets corrected, people start speaking about volatility.<\/span><\/span><\/p>\n\n\n\n

To understand this, we need to know the various phases of the market.<\/span><\/span><\/p>\n\n\n\n

    \n
  1. Volatility<\/strong><\/li>\n\n\n\n
  2. #Correction<\/strong><\/li>\n\n\n\n
  3. #Bear Market<\/strong><\/li>\n\n\n\n
  4. #Recovery<\/strong><\/li>\n\n\n\n
  5. #Bull Market<\/strong><\/li>\n<\/ol>\n\n\n\n

    Volatility is defined as the rate at which the price of a security increases or decreases for a given set of returns. I am not defining this phenomenon as any phase in the market because it happens within each phase and is a part of it.<\/span><\/span><\/p>\n\n\n\n

    We often take the volatility for granted, just like this chart. All three folios have different #RollingReturns<\/strong>, but the final arithmetic average return is 10%. We often use this type of dataset for showing the difference between what the #Investor<\/strong> thinks and how the #Market<\/strong> keeps changing.<\/span><\/span><\/p>\n\n\n

    <\/div>

    Read more<\/h2>

    You must log in to read the rest of this article. Please log in or register as a user.<\/p>\n<\/div>

    <\/div>
    <\/td><\/tr>
    <\/td><\/tr><\/tbody><\/table>

    		<\/td><\/tr><\/tbody><\/table><\/form>
    Forgotten username or password?<\/a><\/div>
    <\/div><\/div><\/div>
    <\/div>","protected":false},"excerpt":{"rendered":"

    Nowadays we are experiencing that the #Market is heading up and down frequently resulting in up and down in the portfolio #Valuation. First of all, we will discuss what #Volatility is. There is a big misunderstanding that volatility means downfall. Whenever the market gets corrected, people start speaking about volatility. To understand this, we need to know the various phases […]<\/p>\n","protected":false},"author":1,"featured_media":8414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[38,68,46,55,78,45],"tags":[76,7,8,56,57,79],"class_list":["post-7385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bltp","category-eye-opening","category-financial-literacy","category-investment-lessons","category-risk-management","category-think-out-of-the-box","tag-thinkoutofthebox","tag-bltp","tag-business-link","tag-financial-literacy","tag-investment-lessons","tag-risk-management"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/bltpindia.com\/wordpress\/wp-content\/uploads\/2022\/11\/Volatility.jpeg?fit=672%2C456&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7QcqY-1V7","_links":{"self":[{"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/7385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=7385"}],"version-history":[{"count":29,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/7385\/revisions"}],"predecessor-version":[{"id":8615,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/7385\/revisions\/8615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media\/8414"}],"wp:attachment":[{"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=7385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=7385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bltpindia.com\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=7385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}