Are there any risks involved in stock investing?

Yes, risk will always be a part of any investment. Note that stocks are the most volatile form of investment. Meaning, it is subject to sudden changes. What good in stocks is that it actually is highly liquid – meaning, you can quickly convert your stocks shares into cash any time at your discretion.



How can you avoid or minimize your losses?

1. Research – Spend some time and effort in studying the company that you would like to invest at. What you need to know about the company you’re investing in are as follows:
   
   
   • Financially sound and growing.
   • Offering products and services that are in demand by consumers.
   • In a strong and growing industry (and general economy).
2. Diversify – It is a strategy for reducing risk by spreading your money across different investments. As the saying goes, “Don’t put all your eggs in one basket.”
3. Monitor – After investing, closely track the changes and developments of the company. In this way, you will be able to see the possible gains or losses that will help you come up with a good strategy for your money.