Volatility is the hallmark of stock price movement in a share market. The stock prices of companies never move in a linear fashion. In the bull market, prices rise and rise and then take a breather and fall. The fall in share prices offers an opportunity to the traders and investors to buy stocks. The share prices next move up until the correction sets in. In this connection it is not out of context to mention that this fall or correction and rise do not follow the identical pattern. Sometimes, the fall continues for a prolonged period of time and the rise also lasts longer. Sometimes, the rise and fall are short lived.

During the bull phase of the market the steep fall offers great opportunities for purchase of growth stocks. When the market is fearful, the opportunities arise but due attention must be paid to the kind of stocks one is to pick. One needs to identify growth stocks beforehand and wait for this kind of opportunity. Some of the features of the growth stocks are noted below: 

1. They are making higher highs and higher lows.
2. Demand for their products is picking up.
3. Quarterly financial results of the companies for the last 4-6 quarters are showing growth.
4. Demand for their products are likely to last/increase for the next 2/3 years.
5. The peer companies are also showing growth and their stock prices showing upward movement.
6. Such stocks are off their lows for a considerable time say for one year or so and rising relative to the market index say nifty 50.

One has to identify which stocks have fallen the most and start accumulating the growth stocks from the fall. Some companies other than the growth stocks may fall equally but they have to be strictly avoided. It has been a marked feature of the growth stocks to fall steeply and rise sharply after the correction. In the recent past it has happened with most of the cyclicals at different occasions of lows. Highly volatile stocks are good investment ideas when the market is depressive provided the stocks are growing. As all the stocks that have fallen will not rise with the rise of the market it is necessary to identify only growing stocks. As the growth of a stock is not perennial the investor should exit such stocks when their growth prospects turn opaque. Low priced volatile shares generally fall more than the high price stocks in a general market correction and likewise they rise more when the market gets euphoric signaling sale. Growth stocks will continue to behave this way till they lose their vitality and the leadership is taken over by the other stocks that start showing growth or the general market slumps into a bear phase. 

It is mentioned that it is well nigh impossible to sell at the extreme high and purchase at the extreme low always. Only by close study of the movement of the stock price and doing adequate homework one can achieve better results. Market movements are emotional and a trader should discipline his emotions to achieve success. When the stock price rises there is expectation of further rise and when it falls there is apprehension of further fall. This emotional entanglement of fear and greed makes it difficult for the trader to purchase and sell at a reasonably right time. Controlling these two emotions, which inhibit success, are of prime importance and the trader must implement his trade in spite of himself. 

The long term investor may opt to hold a bunch of growth stocks through short lived market fluctuations and dispose them at an appropriate time. dispose them at an appropriate time.