Risk Control Principle Of Stock Investment

Is it necessary to lose money in the bull market?

Just as some people in the bear market make money, some people lose money in the bull market. Why? Because there are risks in the bull market. equity market Like battlefields, securities investment and marching war are the same. Investors also need to recognize the risks hidden behind favorable circumstances. The stock market has been warming up for some time, and the stock market has been rising one after another. Many investors are so proud of themselves that they ignore market risks.

In fact, more risks should be emphasized in the market than in the market. First of all, in a weak market, the reduction of the market capitalization of investors is often very realistic and cruel. At this point, even if no one reminds, investors will clearly realize the importance of risk control. In a strong market, investors tend to be careless because of good market conditions, resulting in investment failure.

Second, in the bear market, the stock price keeps falling. Investors naturally put the control risk first. In the bull market, the stock price keeps rising and the risk is gathering gradually. But most investors always want to earn the last profit after profits, and can not get the profits in time, and win the fruits of victory.

Remember the five Risk Management Principle

　 According to the market environment, investors should grasp the following risk control principles.

First, we must control the proportion of capital investment. In the early days of the market, it is not appropriate to operate heavily. In the early days of the rally, the most suitable investment ratio was 30%. The proportion of capital investment is suitable for empty or shallow investors. For investors with heavy positions, short line opportunities should be abandoned and limited surplus funds are used for long-term planning.
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The two is the principle of enough investment. When the overall trend of the market is good, we should not be blindly optimistic, nor can we forget the risk and pursue it arbitrarily. Stock market risk exists not only in bear markets, but also in bull markets. If you don't pay attention, even the rising market will lose money.

　　 Third, stock selection should avoid "dangerous reef shoal". Hit "dangerous reef shoal" to "capsize", the stock market's "dangerous reef shoal" refers to institutions such as funds are heavily held, or huge "Xinzhuang shares", such as the recent non-ferrous metals do not rule out the "2 bottom" possibility shares and foreign beans and dad look at the future market risk and operation of colored will carry up the rebound banner, the rise and fall hope that the opportunity is cautiously optimistic, not suitable for excessive radical stocks. Secondly, problem stocks, huge losses stocks, and wearing cap and star stocks. It is undeniable that such stocks contain the opportunity of profiteering, but investors should realize that such short term opportunities are often not random participation of investors. If they fail in investment, they will suffer heavy losses.

　 Fourth, diversify investment and avoid market systemic risks. Of course, it is appropriate to diversify investment. When the number of stocks is too large, the risk will not continue to decrease, but it will reduce earnings.

　　 Fifth, overcome Profiteering thinking 。 Some investors like to pursue huge profits. When the market is going well, they always fantasize about the coming of Daniel market, turning every rebound into a reversal, unwilling to participate in the band operation or rolling operation with little profit, but keen to catch up and double up the stock market. They always hope to get rich by frying one or two stocks. Although the wish is good, the result of catching up and selling is very little.