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http://www.stockmarkets.com.au/news/2008/10/17/volatility-in-world-stock-markets/

Volatility in World Stock Markets

Friday October 17, 2008

Panic and a suspicion that one economic crisis is over only to have another one arriving just afterwards seems to have brought extreme volatility back to world stock markets. With Wall St experiencing severe losses only to be followed by a day of unusual growth as investors bought up extremely cheap shares, clearly traders are undecided about when to get back in to investing in shares on stock markets. The New York stock exchange has been leading the world up and down as it experiences epic rises and falls, but a realisation that the American economy is having problems that are somewhat different to those of the rest of the world could see this pattern change slightly.

Many traders are eager to snap up cheap shares while they can, but the extreme volatility in stock markets makes this a risky move. Uncertainty about market recovery means that no one wants to miss out on the chance at buying shares cheaply that will normally perform very well, but they are finding it difficult to predict when the best time will be due to the current trend of massive gains followed by extreme losses.

Trading at the moment is certainly not without risk. Those who are looking for extremely long term investments may be able to buy now and profit a long way down the track regardless of instability in the next few months, but even a long term investment strategy could be risky considering some of the major institutions that have fallen in the financial crisis. Keep in mind the level of risk and the amount of attention that must be paid to stock markets at the moment to minimise losses and make any profit before you get carried away in buying shares cheaply. Also try not to start selling shares needlessly out of panic. Consulting with stock brokers could help you in making the right decisions, but no one can be sure of how the stock markets will move so you must act carefully to safely keep trading on stock markets.

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