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Risk in the stock market

Understanding what the risks are can help you master your portfolio.


Earnings reports: The release of earnings to the public as required under securities laws is actually a significant risk and it's not just to disappointments. It works both ways.

The market isn't always open. Significant back log in buying or selling orders can spark a significant swing in price at the open of the session (9:30 e.s.t.).

Flawed system: this isn't about the market but rather the connection of the market to portfolio decisions. Many investors are speculative or biased, use inaccurate information or systems and don't have a system for dealing with their weakness(es). Plenty could be added to this.

Sudden events: it happens and you can't see it coming. Nobody can realistically.

Random action in a stock; it happens due to the relative balance between buying and selling volume.

Stock strategy: It pays to know what works.

Terms and definitions: You'll get more using this along with standard investment terms knowledge.

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