Friday, 3 April 2020

Share market risk

In the stock market there's 4 types of risk you should know before you trade


  1. MARKET RISK


Market risk applicable for all the stocks listed for the trading.

         MARKET TREND

always follow market trend , never trade against trend
in the stock market. you have to remember one thing that TREND IS YOUR FRIEND.
  • MICROECONOMICS INDICATORS

microeconomics indicators can change the direction of the stocks or make big impact on stocks.

Q. WHAT ARE THE MICROECONOMICS INDICATORS?

 ANS. Inflation, political decision, Interest rate, etc are the microeconomics indicators



     2. REGULATORY RISK   [Regulatory risks are sector specific]


    3.BUSINESS RISK

Business risk is only company related

    4. INDUSTRY RISK


we can also call it SECTOR RISK . because this risk impact whole sector.
common problem for the companies running in the sector.


before you trade /invest in stocks  always check the risk for the stocks you are  trading.


thank you guys.






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