Risks associated with market volatility in investment

[Johnson2468]

Investors who invest in the stock market run the risk of market volatility. It refers to how stock prices change over time, which may lead to gains or losses. Market volatility can be beneficial for investors who can buy low and sell high, but it can also work against those who rely their investing decisions more on emotion than on a thorough financial analysis. As a result of market volatility, investors run the risk of suffering big losses if they sell at a low point, missing out on opportunities if they are overly risk averse, and having difficulty anticipating future market patterns. To mitigate these risks, investors should develop a long-term investment strategy that considers their financial goals, risk tolerance, and overall market conditions.