Posted on September 23, 2009 - by Createwealth8888

Understanding Stock Market Risks

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You often hear this – Investing in Stock Market is risky.

In fact, investment of any kind including setting up your own business by nature is risky, and can potentially cause you lose some or all your investing or initial capital.

Actually as a paid employee you also face similar risks of losing your job when you approach 40s or 50s. It is a well known fact that HR department update this list of employees in these age groups during annual budget exercise.

So what are the possible Stock Market Risks and how can we as retail investors mitigate these risks?

1. Price Volatility Risk

• Need to learn how to time your Entry and Exit points
• Buy in batches by Average In (different from Average Down)
• Sell in batches

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1. Understanding Stock Market Risks – No 7 Risk
2. Stock Market Investing From May to November Fraught With Danger
3. Seven steps to creating passive income from the stock market.