Stocks are a high-risk investment practice, but their high returns still make many investors swoon. In order to improve the safety of investors' funds, it is recommended to first learn how to reduce the risk of stock investment through this article to avoid causing losses.
1, To learn to short positions
In stock investment, there are many folk masters who know how to use their funds for short term operations, and sometimes get very high returns, but for non-professional stock investors, they can't be able to track on hot spots every day. Therefore, in the stock operation, to buy stocks in the uptrend, learn to short positions.
2, Plunges are opportunities
The chance of a negative fall is much less than a plunge, plunges are often caused by major shortcomings or chance events, the plunge in the general market relative highs to be treated with caution, but for the main down wave or a plunge after a long time, you should pay attention to the stock, because this often hides the opportunity to invest.
3, Learn strategies to control risk
The most effective strategies to control risk are stop-win and stop-loss. Once investors find that the stock index has broken down significantly, technical indicators are constructing a top, or their own holding profits are decreasing significantly, or even if they have lost money, they need to take the necessary strategies.
4、Control the risk in the position
Investors should decide on the position according to the changes in the market, to reduce the position appropriately and hold a small amount of shares for flexible operation.
5、Trial buying
In stock investment, the most appropriate time to buy is often not grasped. If all the money is invested in the stock market, there is a risk of suffering heavy losses when the stock market falls.
6、Stage selling
The practice of selling in stages is similar to that of buying in stages, and its specific approach is to sell the first batch at a certain price level, sell the second batch when the share price falls to a certain price level, and later sell the third and fourth batches at different prices, etc. During this process, once the share price rises, the investor can either stop selling immediately or buy shares as the situation dictates.
