Risks associated with active investment

Active investment involves taking an aggressive approach to buying and selling securities in order to achieve high returns. Investors need to be aware of the risks associated with this technique even though it has the potential to be profitable. The major risk associated with active investing is market volatility, which can lead to unpredictable returns and quick price changes. Active investors might also get exposed to insider trading or other unethical actions. They might also find it difficult to surpass market trends or take rash actions motivated by feelings rather than logic. So, before making an active investment, investors must consider the prospective rewards and the associated risks.