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Volatility Guide

It is very common to adopt a long-term strategy for investing. In a long-term strategy, you look for companies or currencies that have strong fundamentals, like a good balance sheet, strong management, or a growing market share in a promising industry. These investments are likely to pay off in the long term, regardless of short-term volatility or bumps in the road here and there. This is the Warren Buffet style of investment.

Another investment strategy is to take advantage of short-term volatility - the very bumps in the road that long-term investors are ignoring. In this strategy, you can ignore whether a company has good fundamentals, whether it is likely to succeed in the long run or even what kind of company it is. All you need to be sure of is that it is likely to experience some volatility in the short term.

As an example, look at this volatile stock whose chart was captured from the homepage March 5, 2017.

The simple strategy that this chart suggests is to buy when the stock is one of its repeated low periods, then sell when it is in one of its repeated high periods, and so on, for as long as the pattern of volatility continues.

Of course, this strategy is nice and easy when it works. But, it is impossible to be sure that this exact pattern of volatility will continue. Five in Gold only shows retrospective rankings, not future predictions. Attempt this volatility following at your own risk! And of course, good luck.

Go back to the tips page.

Find our basic tips here.

Find our advanced tips here.

Find our guide to volatility here.

Please note: this site is meant to provide information. It is not meant to offer financial advice or recommendations. Recent trends are not guarantees of future performance. Top growth stocks may continue growing, but they are often inflated and poised for a sharp decrease. Sometimes recent drastic trends are only corrections that are part of a longer-term trend in the opposite direction. While we strive for both accuracy and timeliness, we guarantee neither. Use the information here as a source of ideas rather than a set of recommendations, and always do thorough research before making any trades.

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