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TOPIC: Stocks 101

Stocks 101 6 years 2 months ago #3828

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a) High Risk

b) Moderate Risk

c) Low Risk

Let us examine them individually.

a) High Risk Investment: As the name suggests, high risk investments are full of risks. While they promise high returns, they may also cause huge losses. There is little to predict because of the volatile nature and requires the investor to be on his feet at all times and there is virtually no way to categorize a particular stock into high return or low return brackets. However, before investing, you should know that in order to prosper, it is important to keep a cool head and not panic.

b) Moderate Risk Investment: This form of investment acts as a balance between high risk and low risk investment. While there is lower volatility compared to high risk, it is definitely higher than low risk. On the other hand, the returns on investment are higher compared to low risk but lower compared to high risk. In short, this type of investment is for those who want good profits but at the same time are not ready to take high risks.

c) Low Risk Investment: These are investments which are very stable and carry minimal risks. As a result, they are more predictable which allows the investor to breathe easy at all times. However, the returns on investment are not high but very low compared to the others.

For someone who can afford to spend a major part of the day looking at the figures, the best place to invest would be high risk wherein even if something goes wrong, immediate rectification measures can be taken. On the other hand, for those who are just looking for a place to invest, low risk investment is the place to be. Make sure to do some research before placing the money in the market. It is nothing but small factors that decide whether the investor makes profits or suffers from losses. To be a part of the former, one has to be smart and accurate.

Stay Tunned for the next lesson: For Technical Indicators Visit: http://www.007stockchat.com/forum/video--charts-training/the-rsi-or-relative-strength-index
Last Edit: 6 years 2 months ago by KOSTOCKS007.
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