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May 2024
10m 31s

Understanding Beta and Its Impact on Swi...

Brian Montes
About this episode

In this episode, Brian Montes discusses the concept of beta and its impact on swing trading. Beta measures a stock's volatility relative to the overall market performance. A beta of 1 indicates that the stock moves in line with the market, while a beta greater than 1 means the stock is more volatile than the market. Beta can help swing traders determine the risk level of their trades and optimize their trading positions. Stocks with a lower beta are less volatile and may be suitable for less risky approaches, while stocks with a higher beta offer the potential for higher returns but also come with more risk. Takeaways:

  • Beta measures a stock's volatility relative to the overall market performance.
  • A beta of 1 indicates that the stock moves in line with the market.
  • Stocks with a higher beta are more volatile than the market.
  • Beta can help swing traders determine the risk level of their trades.
  • Stocks with a lower beta are less volatile and may be suitable for less risky approaches.
  • Stocks with a higher beta offer the potential for higher returns but also come with more risk.


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