1/
Get a cup of coffee.
In this thread, I'll tell you a story about a man and his dog.
This will help you think more clearly about volatility, risk, and the relationship between the two.
2/
This is Mr. Biswas Singh.
Friends call him "Biz".
He's 50 years old. He owns and operates several gas stations and convenience stores around town.
3/
This is Spock.
He's a 4 year old Golden Retriever who belongs to Biz.
He's a Good Boy.
4/
Every morning, Biz takes Spock out for a walk.
They go to a local park that has a beautiful trail.
They get there around 6am.
They walk along the trail for about an hour -- until 7am or so.
Then they make their way back home.
5/
Biz walks more or less at a steady speed -- say, 3.5 miles per hour.
Spock, of course, does no such thing.
Sometimes, Spock races ahead of Biz -- straining his leash.
Other times, Spock lags behind Biz, distracted by a lamp post or a squirrel.