This is the most troubling and nagging question I have since day one. It is especially troublesome after I became a "full time trader": Should I embrace volatility? How should I define risk in my model? Is trading volatility similar to trading risky instruments?.... Basically I am a Beta trader, trying to capture higher returns by trading higher Beta instruments, etc. If volatility is not risk, then there is hope that as a volatility (Beta) traders I can achieve long term success, if it is a good proxy for risk then I am doomed. Am I fooled by volatility/randomness? Any comments and guidances will be appreciated.