Market risk comes from many factors, and it needs to be avoided comprehensively. The first is to grasp the trend. Analyze the historical data of price changes of each stock in detail, and understand the law of periodic changes and the ability of sustained growth of income.
For example, in the automobile manufacturing industry, when the social economy is relatively prosperous, the profits of its companies are guaranteed. On the contrary, when the social economy is depressed, people's income will decrease, and the number of automobile consumers will also decrease greatly. It is generally not easy to buy its shares during this period.
Extended data:
The operating conditions of enterprises are often cyclical. When the economy is booming, the stock market is active. When the economic environment is bad, stock market transactions will inevitably shrink.
We should be careful not to regard the off-season of the stock market as a period of large-scale stock investment. In western countries, changes in the stock market are more sensitive to the economic climate. Often six months before the recession, stock prices have begun to fall.
Baidu Encyclopedia-Bad Stock Market