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What are the risks of investing in stocks

Four major types of unsystematic risk:

  1. Economic risk: It is possible that the stock will fall by 50% in one month, and 1 million will become 500,000 in an instant.
  2. Mental risk: the funds are shrinking, the eyes are crying, and the spirit is about to collapse.
  3. Emotional risk: If you focus on investing in stocks and neglect your sweet wife, you will inevitably quarrel for a long time.
  4. Legal risk: in order to have more money to invest in stocks, it is possible to steal or rob.

Stocks are risky, but the returns are higher. Benefits and risks go hand in hand. However, some people are good at technical analysis and good analysis, and his income is very considerable.

 

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