Taking risks, seeing opportunities and riding volatility
When we come to investing in the stock market, we can’t never avoid risks and volatility.
We may need to define our own personal risk in the stock market. Every retail investor’s personal definition of risk in the stock market may vary.
What is high risk to one retail investor may actually be low risk for another.retail investor. Risk in the stock market is very personal so we cannot anyhow imitate other retail investor’s investing method and strategies without relating back to our risk profile.
He defines his personal risk in the stock market as not losing part of his investing capital.
He will not risk more than 10% of his capital in any one stock no matter how attractive or “under-valued” that stock can be. …