Risk Management in Market Timing

Risk Management in Market Timing

Diversification

Diversification involves spreading investments across various asset classes to reduce risk.

Benefits

  • Reduced Volatility: Diversifying investments can lower the impact of market volatility. 건설 관련주
  • Risk Mitigation: Losses in one asset class may be offset by gains in another.

Stop-Loss Orders

Stop-loss orders automatically sell an asset when its price falls to a predetermined level, helping to limit potential losses.

Benefits

  • Loss Limitation: Prevents significant losses by automatically triggering a sale.
  • Peace of Mind: Provides a safety net and reduces the need for constant market monitoring.