InvestorQ : What are the risks that traders get exposed to in the stock markets?
Juvina Maggie made post

What are the risks that traders get exposed to in the stock markets?

Answer
image
2 years ago
Follow

Trading and investing in the equity markets has an element of risk to it. Put simply, you may buy a stock and the price may crash. Alternatively, you may sell a stock and the price may go up. Your company may not perform as well as you originally anticipated. Equities can be volatile and that means you could face losses as a trader or even as a long term investor. You often get to hear about risk management and at the core of managing risk are the basic precautions you take while buying and selling stocks in the stock market. Traders are exposed to both systematic and unsystematic risk factors. While systematic risks cannot be diversified, the unsystematic are more specific to companies or to industries. Such risks can be easily diversified by spreading your money across sectors. That is the best way to manage your risk in any portfolio of stocks.

0 Views