Choosing an investment alternative with careful consideration and not just because of tempted results. In investment there is a standard formula: the potential return on an investment is always directly proportional to the risks. Aggressive investment alternatives (have high returns) also contain a relatively high risk.
# Beware,, Avoid Risk / Reward Risk Trap
Risk management controls in stock investing are the right thing to do and should be well understood. In analyzing the risk there are usually two approaches that are technical and fundamental analysis with the following illustration of risk ratios:
To minimize risks in stock investments, first understand the following risk / reward calculation steps:
-Choose a stock with good fundamentals, Do not put all our investments in one type only, If playing a stock, buy what is known and understand what to buy, Use basic trading principles ie buy low when high, Train the experience starting from the cheap stock price, The weakness of the above is that it takes a long time, but the benefits, you will be more careful in stock investment so that the risk is more controlled.