Category: Money tips Release Date: 2007-05-30
Investment in the stock market has always been that the risks and benefits of the brothers, in most cases accompanied by a high-risk high return and low risk low return match. Risk has always been keen to stock investors in research and discussion of the topic, how to control risk, including the control of individual stocks and portfolio risk is directly related to the success of each investment. How do we effectively control the risk and thus the premise of maximum risk aversion continue to improve the level of return is what is now placed in front of us a problem. Here, I put the experience in this area out and share:
The risks of investing in the stock market generally fall into two categories, one category is a non-systemic risk and another systemic risk. Systemic risk is caused by some kind of general factors, all of the stock market gains and losses on both the risk of an impact. For example, changes in interest rates, indices to new highs, the stock will form political turmoil Dengjun systemic risks. Non-systematic risk is caused by some special factors, affects only the part or the risk of individual stock gains and losses. Non-systemic risk primarily from industry and enterprise development and status of the special factors, the transaction system's security status. Us what to do in order to maximize to circumvent them?
First of all, as opposed to institutional or professional investors, the concept of ordinary investors for the risk of relatively shallow, to buy shares of stock selection process of a relatively simple messages or channels through the market mostly recommended. My suggestion is that this part from the stock picking begun to focus on the company's qualifications (including growth, industry position, product maturity, etc.) selected a good qualification is what we commonly referred to as a strong market, defensive stocks ( Beta may also refer to refer to this target), so that you can effectively circumvent a number of systemic risk.
Second, the stock market investment process is not gambling process, we should not put all the money was bet on a single stock but rather to build an investment portfolio, this combination where the number of shares should be based on the size of funds as the scale.
Third, the stop-bit setting can effectively control risk. Each investment must be accompanied by a corresponding program, and in the process of investment in the stock market, what should we do to ensure that the loss of control within a certain range, which requires us to set up the investment process in each one they can accept stop-loss position.
Finally, we should cultivate a good habit, after the daily close of shares owned by the simplest to make a risk assessment to calculate the next day the scope of possible risks, so that will help us have a grasp on the premise of the risk of investing in .
