What are the risks of investing in stocks?

The purpose of investment is to increase capital and gain investment income. If investors may not get higher income than those who deposit in banks or buy bonds, or even get no income, it means that investors have suffered a risk, which is called investment income risk.

(2) Capital risk of stock investment.

The capital risk of stock investment refers to the possibility that investors face the loss of investment capital in stock investment.

Extended data

The risk of stock investment has obvious duality, that is, its existence is objective, absolute, subjective and relative; It is both inevitable and controllable. Investors' control of stock risk is aimed at the duality of risk and adopts a series of investment strategies and technical means to minimize the cost of risk.

1, risk avoidance principle. The so-called risk aversion refers to predicting the possibility of risk in advance and analyzing and judging the conditions and factors of risk occurrence. The specific way to invest in stocks is to give up investing in risky stocks. Relatively speaking, the principle of avoiding risks is a relatively passive and conservative principle to control risks.

2. Risk reduction principle. The principle of risk reduction means that in the process of engaging in the economy, we should not give up the established goals because of the existence of risks, but take various measures and means to minimize the probability of risks and reduce possible economic losses.

3. Lien risk principle. This means that when the risk has occurred or it is known that the risk is inevitable and transferred, we should face up to the reality, take the risk from the long-term interests and the overall interests, and minimize the risk loss as much as possible. In stock investment, investors determine the degree of risk tolerance within their own power, and decisively "cut the meat and lighten the position" and "stop the loss" when the stock price falls and they have lost money.

4.* * * The principle of taking (spreading) risks. In stock investment, investors participate in stock investment in partnership with various forms of investment groups and share investment risks together. This is a conservative risk control principle.

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