Why Volatility Regimes Matter for Every Investor Volatility is the engine that drives risk and opportunity in the stock market. It can be me

Why Volatility Regimes Matter for Every Investor Volatility is the engine that drives risk and opportunity in the stock market. It can be measured in two ways: historical volatility, which looks at how much price has actually moved in the past, and implied volatility, which reflects the market’s expectation of future swings as priced into options. Understanding which regime the market is in-high, low, or transitioning-helps you keep a strategy that stays executable when turbulence lasts for weeks or months. High‑Volatility Regime: Tighten Your Entry Criteria When both historical and implied volatility spike, price action becomes erratic. Large swings create...