The most obvious example is a hedge fund manager who has a stock "short". This means that the profits of the fund when the stock goes down and loses when it goes up. His risk is upside down.
Investment fund managers try to beat a specific benchmark. When they are in part out of the market, or a very conservative investment, the risk is reversed.
When a stock analyst to write a professional relationship, which recommends the stock, list all the factors, which may be problems with the company. When an analyst recommends against the owner of the store, lists all the things that could be better than expected. The risk is upside down.
This is an essential concept for the individual investor. It begins by analyzing your personal situation
Issues relating to key investors: What are your risks?
The average investor thinks only downward. Because of our natural instincts of man, well established in the psychological study of behavioral finance, we focus everything we could lose. This can have a chilling effect.
Meanwhile, a steady stream of new issues. This is the grain to the reports of the media every day.Professional cut through the news. They have a specific marketing plan, balancing risk with reward. Most retail investors do not have a solid plan - one with a specific goal and a process to achieve the objective. They often make the mistake of treating their investment as a game of poker, where they are "all inclusive" - or all out.
If you have all the money you need for your future, you need to preserve capital. I understand that interest rates are low, but safety is important. Be careful!Most of us are not in the happy situation. We need to create wealth, not only to preserve wealth.
If you have a great need for the future and you do not own any stocks, was undervalued.To understand the risk, you should ask yourself, what would you do if the market is going to 15,000? For 20 000? When you decide to buy? If you do not have a plan, it means that you will fail to achieve your goals.Every portfolio needs a balanced asset allocation. The correct answer is different for every investor.
Great victory
The professional investor views risk in terms of raising and lowering. The fan is in decline. That does not pose a decisive when there is opportunity and the units on the market to new heights. There is no better time to invest when there is the concern of many well known and well documented. A bad time to invest is when nobody cares.It is very difficult to understand and even harder to implement.
Indira Geffrys is a what is malware and financial expertinterested in economics, antivirus live, and different business opportunities.
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