How to utilize risk management

A Technical Analysis Book ByBrian Shannon

How to Utilize Risk Management?

What is risk management in stock market?Stock market is a combination of returns and risks. Generally, it is said that greater the risk, greater the return. There are usually two types of risk:

• Inflation risk – results from price rise or fall of services and goods• Market risk – results via decrease or increase of financial market

Risk management is the combination of several strategies and systems to diminish and overcome the risks involved in stock market.

How to utilize risk management?Do you know how to utilize risk management? The following are a

few strategies that can be incorporated for the same:

• Stop loss – a device that can assist to prevent the loss of money• Follow the ongoing and certainly changing market trends – one

of the best methods to curtail stock market risks• Portfolio diversification – a proven strategy for risk management

to broaden the horizons of risk by simply investing in a portfolio

Technical Analysis BookTechnical Analysis Book by Brian

Shannon that gets you acquainted with:

• Estimate profit potential in trades

• Identify low risk high profit setups in stocks

• How to utilize risk management to lessen losses and maximize profits

Chapters in Technical Analysis

• Introduction• Technical Analysis• The Four Stages• Market Trends & Volume• Moving Averages & Time• When & How to Buy & Sell Short• Fundamentals & News• Risk Management Strategies• Rules & Insight