Directional investing is employed by those who believe they will be able to accurately predict the movement of the price on a security. If they believe that the price of a stock is about to rise, they buy it, and if the price is about to fall, they sell. Market timers, equity investors and trend investors are all prime examples of this type of strategy. Each of them depends in some way on the market causing their chosen securities to rise in value. Such stock trading and investing strategies are the most susceptible to the volatility of the market. An increase in the volatility of the market can, in fact, produce a temporary directionless market rendering the predictions of these investors ineffectual at best
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