Risk Management Guide

Learn to protect your investments and manage market risks

Market Risk Management

Diversification

Don't put all eggs in one basket. Spread investments across sectors and companies.

  • Invest in 8-10 different sectors
  • Maximum 10-15% in single stock
  • Consider market cap diversity

Position Sizing

Control investment size based on your total portfolio.

  • Follow 2% rule for trading
  • Maximum 20% in single sector
  • Keep emergency funds separate

Important Notice:

Risk management is crucial but cannot eliminate all investment risks. Always invest what you can afford to lose and consider consulting with a financial advisor.