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How to Take Advantage of Volatile Shares

By Brian Richards – Updated Apr 7, 2017 at 12:56PM

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LONDON -- In this video edition of Ask A Foolish Question, Motley Fool UK editor Sam Robson puts a question to senior market analyst David Kuo sent in by one of our readers. The question asks whether there is anything wrong with frequent dealing to make profits off volatile stocks, and David responds with his view on how to weigh your portfolio with different types of shares. 

Additionally, David uses the examples of Barclays (BARC -0.25%)Diageo (DGE 0.41%), and SABMiller (LSE: SAB.L) to stress the importance of knowing the value of the shares you want in your portfolio and warns of the potential pitfalls of investing in speculative shares.

If you want to learn more about shares but are not sure where to start, then download our latest free guide, "What Every New Investor Needs To Know." Additionally, you can send any questions you'd like answered to [email protected].

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David owns shares in Barclays, but no others mentioned. Sam does not own any of the shares mentioned. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Diageo plc (ADR). The Motley Fool has a disclosure policy.

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Stocks Mentioned

Diageo plc Stock Quote
Diageo plc
$169.81 (-0.08%) $0.13
Diageo plc Stock Quote
Diageo plc
$3,797.50 (0.41%) $15.50
Barclays PLC Stock Quote
Barclays PLC
$144.30 (-0.25%) $0.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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