Investment can bring returns to investors, but investment returns are accompanied by risks.

As individuals' investment channels become wider and wider, various investment risks also increase accordingly.

Investors must fully understand the existence of investment risks and adopt appropriate risk management methods and techniques in order to effectively resist risks, reduce losses and increase returns.

1. Preventing risks Preventing risks means to be mentally prepared and to nip problems in the bud as much as possible.

(1) Investors should develop an objective financial income and expenditure plan.

First, investors should calculate their actual assets, including cash income, real assets and other financial assets.

Second, investors need to consider their actual liabilities.

After these basic figures are clear, you will have a good idea of ??the "capital" that can be used for investment.

(2) Capture investment information from daily life.

As long as you pay attention and be a thoughtful person, you can capture information that is beneficial to investment from your daily life.

(3) When investing, you must assess the situation and do not make decisions blindly when the market situation is unclear.

Investors should always pay attention to the economic development situation and make independent judgments based on their own experience, rather than blindly following the crowd.

For example, if you invest in stocks, when the market is very hot, there will be unimaginable fluctuations.

Because when the market rises, people will rush to buy it, thus stimulating the stock price to rise. This is a characteristic of stocks.

Therefore, there is a common saying in the stock market for risk aversion: "If you don't know the market situation, don't rush into the market."

2. Risk avoidance There are three avoidance strategies that can be adopted for risks.

(1) Choose investments while avoiding the most important and taking the easy.

Weigh various alternative investment projects, pay attention to the risk shown by the coefficient of variation, and choose projects with low risks for investment.

(2) Investment that maximizes strengths and avoids weaknesses, seeking advantages and avoiding disadvantages.

The way to invest is to accumulate gradually. If you don't lose money, you will make a small profit.

Therefore, investors should maximize their strengths and avoid weaknesses, seek advantages and avoid disadvantages, and especially not have any luck or gambler mentality.

(3) Adopt short-term investment asset structure methods, reduce the average maturity of assets or increase the proportion of short-term assets.

Short-term asset structure is conducive to enhancing liquidity, and the sensitivity of assets can be used to adjust the market risk of assets.

3. Risk transfer Risk transfer refers to investors transferring risks through some legal transactions or means.

If the investor does not directly participate in the investment operation, but invests in the unit or individual undertaking the investment project, it will give up part of the profit without taking the risk, and transfer the risk to the direct contracting unit or individual.

Investors can also transfer risks to insurance companies by participating in insurance or requiring capital investors to participate in insurance.