Risk Management
Type of risk
1.) Financial risk : stock price may be down because of financial risk.
2.) Interest rate risk : It will also effect on stock price when bank change interest rate.
3.) Market risk : Market risk will be occur base on supply and demand.
4.) Inflation risk : People spend a lot of money and can’t pay back debt. As a result financial crisis and Inflation risk will be occur.
5.) Tax risk : Government increase tax.
6.) Political & Gov risk : This risk will be happen when government change rule and it effect on industry.
7.) Personal risk : This type of risk will be happen when you don’t have extra saving cash and need urgent cash.
8.) Emotional risk : This type of risk occur base on your emotion. For example, company financial statement is going down but you love this company and not sell on suitable price.
Minimizing risk
1.) try to improve knowledge
2.) learn from past unsuccessful investment
3.) before invest in stock, practice on these site
4.) save minimum 3 month to 6 months of your salary for urgent case.
5.) Don’t invest all of your money into one stock , split and invest in different stock and different industry
6.) Also invest in bond, ETFs and other fund.
7.) Don’t invest more than 10% into one stock
8.) Invest in 4 or 5 stock but should not more than 10
