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How to minimize the risk of loss in Stock Exchange?

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Question added by Amjed Mehboob , G.M -(Currently Job Seeking ) , Advance Education centre
Date Posted: 2016/08/30
Tomasz L
by Tomasz L , Reporting Specialist , Outworking

There are many ideas, sometimes they reject each other. Below I present some of them:

- diversify the portfolio (don't invest only into one company, buy different tranches, etc.)

- avoid companies with dependence on commodity prices

- avoid companies near to the M&A transactions

- avoid opening gap (highest volatility)

- avoid "trade the news" (nonfarm payrolls or interest rate decision)

- change the time horizon of investment (daytrading, medium or long term investment)

- use benchmarking or technical analysis indicators

- use fundamental analysis rather than technical analysis

- select the proper transaction period ("Santa Claus rally" or just "sell in May and go away")

- don't invest your all savings (only this part which you can lose)

- create your own risk profile and strategy (emotions are not the best advisor)

محمد السيد محمد الزيني
by محمد السيد محمد الزيني , رئيس قسم الخبراء الحسابيين بوزارة العدل , وزارة العدل - قطاع خبراء وزارة العدل

loss in securities is to diversify the portfolio by buying shares in more than one company and more than the field of non-purchase in one field or one company The risk of loss can also be reduced by activating the stop loss by selling if the share price falls below the purchase price by 5% or 10% as the case may be

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