With the recent market volatility we have ranked this weeks StockTwits 50 based on our “Truth Serum” research.
With the Truth Serum we check the volatility of returns of company against a benchmark. A reading of 1 means the stock is the same volatility as the benchmark. If a stock is twice as volatile, it should go up (and down) twice as much as the S&P 500 Index. If it is less volatile, then it should go up (and down) a bit less.
Risk management is something traders usually forget about during bull markets. Don’t fall into that category.