BeginnerBasics
Investment Risk Management: Protecting Your Capital
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Learn methods to identify and manage investment risks, including position sizing, stop-loss strategies, and asset allocation to protect your capital during market volatility.
Investment risk refers to uncertainty in investment returns. Main types include:\n\nMarket risk: Losses due to overall market decline\nStock-specific risk: Single stock decline due to company issues\nLiquidity risk: Inability to buy/sell assets at reasonable prices\nCurrency risk: Impact of forex fluctuations on investments\nInterest rate risk: Impact of rate changes on asset values