In the initial stage of investment, we often try to test the water with a small amount of money, and when it is almost practical, we begin to invest with a large amount of money. At this time, if you are too confident in your investment ability and blindly pursue high expected annualized expected returns, you will also lose your wife and lose your soldiers. Only investors who know how to avoid risks with large sums of money can become victorious generals. Several effective risk control principles are introduced for reference.

1, 28 Capital allocation investment

The purpose of allocating funds is to enable investors to obtain more expected annualized expected returns on the basis of ensuring funds. Simply put, it is to make money without panic or fear. The 28 th principle has guided the investment behavior of many investors. Investors can divide this part of the funds into 20% and 80%. 20% of the funds are used to invest in more radical projects with higher expected annualized returns, such as stock market and real estate; 80% of the funds are invested in money funds and funds with low risk of expected annualized expected returns.

2. Pull a long line to catch big fish

Short-term investment and long-term investment have their own advantages, and which investment method is better has always been a controversial topic. In fact, short-term access can earn a little money at most, and long-term holding can make a lot of money. Financial planners and some professional investors generally do not advocate short-term investment. Of course, after the baptism of the once-in-a-century financial crisis, short-term entry and exit, and setting a stop loss point are also one of the ways of risk control, but investment is precisely the deposit of risk and expected annualized expected return. If you want to look forward to the annualized expected return for a long time, you must make a long-term investment plan.

3. Go deep into the investment industry and master theoretical knowledge.

Having rich financial knowledge and paying attention to real-time financial industry information can help you arrange investment matters reasonably. Before making any investment, you should carefully confirm whether the characteristics of risk and expected annualized expected return are in line with your risk tolerance by reading relevant professional literature. It is very important to prepare your homework in advance, and you can't take it lightly. In the choice of investment varieties, we should give consideration to risks and expected annualized expected returns, and stocks need to balance the differences between domestic and foreign markets.