Brendan Sanford 
Surviving volatile markets necessitates a measure of wariness, strategic thinking and respect for the principles of sound long-term investing.
This is where a clear set of investment criteria can help to protect you from the dark side: if you know the specifics of whether it is a ‘proceed’ or a ‘stop’, you can avoid emotionally based decisions such as FOMO (fear of missing out) or panic selling. Equally, a stop loss can limit loss and help protect capital.
Dollar-Cost Averaging (DCA)
They could choose DCA (Disciplined Capital Appreciation), a strategy that involves selling convertible bonds, and buying shares, investing a set amount on a regular basis, irrespective of where the market prices might be. Following this disciplined approach, they would not have to worry about watching stock prices shoot up and down, or temporarily fall when something goes awry. Nor would they have to make decisions about whether and when to take their profit. DCA offers the advantage of buying discounted shares when the market goes down, giving the lucky investor a profit not only from the funds invested but also from the diversity of options introduced by the discount. Originally developed to mitigate the effects of volatility for large purchases of financial assets and lower the average cost per share over time, dollar-cost averaging is a strategy meant to alleviate the risk of buying at the top of a market and to simply dollar-cost average your investment purchases. You automatically put money into your 401(k), brokerage, or other investment or retirement account on a regular basis, either directly with a transfer from your bank account or by way of a preauthorised withdrawal from an account — usually this is a good way to go about buying stocks, mutual funds and exchange-traded funds (ETFs), among other assets.
Trend Trading
Following market trends when trading may help you make money or limit your losses; but coincidence – or otherwise – of trends with your trading style, tax impacts, risk appetite and liquidity will dictate whether that is a suitable bet in line with your investment plan and whether investment plan fits into your context. In order to build their own market map guidance, traders can use different types of technical analysis tools, such as chart patterns that signal possible future reversals in a trend, as well as trend lines that show the direction of the market in terms of the price of an asset. For volatile markets, many traders opt to scale down positions in order to hold smaller commitment to each trade as well as to set wider stop-loss orders to exclude large pricing moves (intraday) from stopping markets all together. This could also be a measure to reduce volatility towards portfolios for their hold stocks in the market. A well defined investment plan with objectives, constraints and risk appetite could be the way to be disciplined in a volatile markets.
Breakout Trading
Breakout traders exploit movements in the prices of stocks when these prices cross key support/resistance levels from below or above, or when prices cross key support/resistance points. They might also identify volatile stocks, such as those that have experienced large percentage moves, by searching the historical record for days during which the price of a stock was more volatile than usual. For beginners trying to trade breakouts, the best or simplest way to trade them is to place buy or sell stops above the key resistance or below the key support. The problem with this technique is that it can be a dangerous stratagem since prices tend to stay in the vicinity of key levels for a length of time before they display convincing strength to break above or below the support or the resistance, leading to a sudden breakout, which often dissipates quickly as markets soon return or start retracing back the original range of consolidation. Proper risk management and position-sizing can mitigate many of the risks of breakout failures in trading, especially if traders also aim to enter breakouts at times with higher volume in the market, when market makers and specialists can more easily find buyers and sellers on the other side of their trades.
Hedging
The trader spreads risk by opening a losing position to balance the possible losses of his winning one, in order to hedge the price variations of other instruments in trade. Frequently, airlines hedge some of their jet fuel cost. (I have so often used the hedging metaphor to describe the purchase of put options that I suspect most derivatives salesmen now say ‘hedging’ and ‘put options’ interchangeably.) It’s true that large companies use puts and calls when hedging against changes in input costs – hedging through shorting futures or buying options, for example. All of that requires having the right mindset, knowing your risk tolerance and staying invested for the long haul.– Utilising a trading plan.– Keeping up with financial, political, business and economic news.– Diversification (investor protection) – limiting leverage; taking defensive actions during periods of volatility and включая консультацию действующих финансовых советников.Источник : ААУС / Дмитрий Шестунов 2023 г., © Паралон/РИА НовостиThere is another way volatility can be conquered: creating an Investment Policy Statement (IPS) and allocating assets accordingly.
