So many do not think about the risk involved in business before they pump their money into it forgetting that there are some times that money will be lost in the business that they invest and there by putting all of their savings in it which is very unwise to be honest as one needs to have a fall back money after investing.
How to manage risk in investment.
- Thread starter Blessed19
- Start date
To manage you risk when investing, you need to first know your risk tolerance level. So you can decide if you can go with an investment with high risk or just stay low
Before investing, you should do a lot of research and the most important factor is diversification in investment. Try to invest in several different places so that if you fail in one investment, you have the chance to change the situation in other places.
Diversifing your fund will help in reducing the risk. If at all you will loss some fund it won't be all. You will still have some other ways you can make money
The risk can be managed simply by trying to do research on the asset to see if it may be relevant to invest in it or not, that is, what it offers, if it comes to solve something in the field where it is, the team behind ... Also the good management of capital and the percentage allocated to investment is very important.
If you are going to manage investment risk, in order to minimize risk, then you determine investment goals and targets, make good technical, fundamental and market sentiment analysis. Diversify in several investment instruments.
To manage your investment, you have to know your risk tolerance. I have not invested directly in any business. I just invest in stocks, bonds and mutual funds. I also do research before buying any stock. I maintain a diversified portfolio. Never borrowed money to invest.
One thing about investments is that you cannot actually do without risk. There is so no investment out there that does not have its level of risk. I believe the best thing to do to manage this is to invest what you know you can loose.
