| Stock market provides the same chance for | | | | techniques, models and financial analyses.The potential |
| investors to take their return, but so many investors | | | | return from any investment is generally depending to |
| can't earn enough returns and lose money, why? | | | | the amount of risk the investor is willing to |
| Because they don't know what is risk management | | | | assume.Investors will not take on greater risks |
| and don't use it.What is Risk Management?Risk | | | | without the possibility of higher earnings. This is called |
| management is the process of measuring, or | | | | the risk premium.Common types of Risk There are |
| assessing risk and then developing strategies to | | | | two common risks that investors should notice them |
| manage the risk while attempting to maximize | | | | well:Market Risk: The possibility that the value of |
| returns. Typically involves utilizing a variety of trading | | | | financial markets rise or fall. |