I always choose environment where I have the advantage. Trading less volatile stocks gives traders a chance to learn how market makers operate, how the business of making markets transpires. After all, traders are themselves making a market, buying lower than the price at which they wish to sell. I also strongly suggest that traders analyze the opportunities on listed exchanges. Exchanges such as the NSYE and AMEX offer greater liquidity and depth.
Bids are typically more substantial and liquid.
As well, some of the best companies in the world trade on these exchanges. While misperceived as offering little in the way of electronic executions, the NYSE offers the Superdot system that often outpaces any NASD execution system. The idea of hedging risk is a much-debated topic amongst traders. Yet virtually all successful trading firms and funds employ tremendous risk management processes. In general, I find the less successful participants to be somewhat carefree in their limiting of risk, in their approach to the markets, overly confident in their decisions and without regard for the true potential for horrific losses.