1. Managing Investment Risk
By: www.profitableinvestingtips.com

2. Managing investment risk includes
diversifying to balance business
risk, being wary of overpriced
stocks, and not confusing short
term goals on long term investing
techniques.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

3. Picking new winners is always the
name of the game but picking
them at the best price, diversifying
to reduce sector risk, and choosing
stocks whose prospects match your
long term goals are good ways of
managing investment risk.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

4. Business risk is the risk of
competition. Effectiveness of
management, developing and
promoting products, penetrating
markets, and doing so in the most
cost effective and profitable
manner all go into a profitable
company.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

5. Business risk is also economic risk.
Macroeconomic circumstances
such as recessions and wars can
devastate otherwise thriving
businesses.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

6. New scientific discoveries or new
technologies can likewise create
new winners and losers.
Diversification helps in managing
investment risk.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

7. Consumer product companies
typically do better during a
recession than oil companies.
Owning different types of stock in
several market sectors will protect
you from an isolated market
downturn in one sector.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

8. Fundamental analysis of stocks
includes a careful look at price to
earnings ratios and cash flow
ratios. These details will tell you if
a stock is overpriced or
underpriced. They will tell you how
effectively the company is using its
cash flow.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

9. Fundamental analysis of a stock
will tell you if it is a good buy or if
its success has caused it to become
overpriced. May companies have
their day of rapid expansion and
eventually grow to a size that
inhibits spectacular growth.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

10. They are typically priced in
anticipation of future earnings.
Managing investment risk in
buying stocks has to do with not
overpaying for popular stocks on
the one hand and finding
underpriced stocks on the other.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

11. Managing investment risk probably
best starts with having a clear idea
of what your investment goals are
and developing an investment plan
consistent with your goals. There
are many stocks that have
appreciated in value over many
years.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

12. Long term investing is best served
by finding underpriced stocks with
good prospects, buying and
holding. However, almost all
stocks suffer when there is a
market crash.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

13. If your goal is to make a certain
amount of money in a few years
you may be disappointed when the
economy turns sour just when you
want to sell and take profits.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

14. Managing investment risk for short
term goals is easier with trading
options where there is profit in
both the rise and fall of stock
prices.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

15. Knowing what penny stocks to
watch for short term gains may be
a better idea in a volatile market
where you want to keep your gains
as cash.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

16. Managing investment risk works best
when you don’t let everyone else’s
mood affect yours. Polls tell us that the
American public is very pessimistic
about the economy despite the fact
that the economy is improving, retails
sales are coming back, and
manufacturing is picking up.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk

17. Whether you are investing in
oil, investing in gold, or investing
in beer companies keep your eye
on financials and fundamentals as
your guide to managing
investment risk.
By: www.profitableinvestingtips.com/profitable-investing-tips/managing-
investment-risk