How can Stock Market Volatility affect investment?

[Good-Person]

Stock market volatility tends to be one of the interesting things related to the stock market. Stock markets could be volatile. However, there could be times when the stock market could be much more volatile. So, when this thing occurs, do you think this could have any kind of effect on investor's decisions?

 

[Riberet19]

Of course, yes, what would you think of an asset that moves violently every day both up and down? Many will think that it is a good option to make money and capitalize for example by trading, other investors will see it as a roller coaster and too risky for them so they will stay away, volatility is one of the main reasons why investors choose or not choose an asset.

 

[deucher]

For me, it has a great impact because when there is such volatility in cryptocurrency, the prices recover very quickly, and in six months I can already be in the black. But when there is a big fall in stocks, it takes many years for the price to recover. for example, 3 years ago, all Chinese shares fell in price and have not yet recovered.

 

[Kane]

One of the common things happening in the stock market because of market volatility is panic selling. When market falls, a lot of investors, especially small investors start selling.