Economic and political imbalances in the countries, interest policies applied by central banks, inflation, unemployment and non-agricultural employment changes, speeches of the heads of state, disagreements between countries, wars, undesirable natural disaster situations, developments that affect the economy positively or negatively directly reflects. This is due to the change in the purchasing power of investors.
Bonds, stocks, bills, mutual funds, stock indices, gold, silver, platinum, copper, oil, wheat, lentils are traded commodities and all currencies are traded on the stock exchange. The prices of investment instruments vary depending on each other.
In order to keep the risks under control in the market, you should know the stock exchange very well and understand its logic. You should take the education of the institutions that offer the best opportunity. In this way, you can understand how to treat risks.
Investors have generally preferred to diversify a single investment tool rather than adding them to their portfolio in order to avoid risks. Thus, risk factors are distributed over the instruments. You can achieve efficient results thanks to a good market monitoring and analysis. In addition, instead of buying and selling on a single price, it is more accurate to process from different price levels. Thus, you can achieve more profitable results.
In order to prevent risks, you should not neglect to follow the stock market. You should understand why prices change. You must apply the basic and technical analysis of your investment vehicle before turning it off without opening a position, and decide how you should behave as a result. By analyzing the most accurate time, you can evaluate the positions that are expected to yield a profit. Likewise, if you receive the signal that you will encounter a reverse situation, you must close your transaction directly. You can easily understand all of this through your growing knowledge and experience over time.