Generally speaking, high-risk investment products include these: first, stocks; Second, trust; 3. Futures; Fourth, gold; V. Internet financial management.
High-risk stock
High-risk stocks refer to the possibility of subsequent losses or low status after buying stocks, or the possibility of relatively high losses. First of all, he is intuitive and subjective. For example, when you are told that there is a 50% chance that you will not get the expected return on your stock investment, you will find that the risk is quite high. When you are told that there is a 95% probability that you can't get the expected return from the project investment, then _ basically everyone thinks that it is very risky to do so.
Internal risks:
The company is strong outside but weak inside, and has no practical ability. Such companies are at risk of delisting and real price reduction at any time.
External risks:
1, natural disaster.
2. Implement policies.
3. Manage risk types. On the one hand, it is mainly the risk of creditor's rights and debts and the financial cost of operation.
Low-risk investment
If investors accept the definition of operating risk in terms of relative expected asset loss or low state, it will be easier to define low-risk and high-risk investments.
Low-risk investment means not only preventing losses, but also ensuring that potential dangers will not happen.
When considering risks, investors must also consider factors such as time period, expected income and professional knowledge. To sum up, the longer investors wait, the more conservative their estimates of the predicted returns will be. There is no doubt that risks and returns are related. If investors expect to get high returns, they must accept greater risks. Professional knowledge is also very important, not only to identify the projects that are most likely to predict the income (or strong), but also to correctly identify the possible risks and their degree.
Regarding the identification of investment risks, many new investors believe that risks are clearly defined and can be quantitatively analyzed. However, this is not the case. Although it sounds simple, there is still a consensus on the meaning of "risk" or how to consider it.
Economists often try to take volatility as a representative of risk. In a sense, it makes sense. Volatility considers the degree to which a specific number changes with _. The greater the probability, the greater the possibility of some of them. More importantly, its volatility is relatively easier to measure.
Unfortunately, volatility is flawed as a risk measure. Although more volatile stocks or bonds do give users more choices, it does not necessarily affect the probability of this result. In many ways, this kind of fluctuation is more like the fluctuation that passengers may encounter when flying, but not all problems are closely related to the crash probability.
A better way to consider risk is to estimate the possibility or probability that an asset is experiencing permanent value loss or below expected performance. If investors buy stocks with expected return of 10%, the probability that the return is less than 10% means the risk of project investment. This also means that the state of low relativity to the index value is not necessarily risky. If investors buy a stock and expect its price to return to 7% and 8%, the objective fact that the value of the S&P 500 index is 10% is largely irrelevant.
Important points
1, _ has a sound risk definition or evaluation index.
2._ Experienced investors will consider the probability that special project investment (or asset allocation) cannot maintain the expected return and the extent to which it may not reach the target.
3. By grasping what risk is and where it comes from as soon as possible, investors can strive to create asset allocation with low loss probability and low potential risk.