Stock market risks are always hidden in every investor, which means that regardless of the period the stock market is in, investors should have a certain level of risk awareness and be prepared to control risks. Here are a few tips to reduce the probability of losses:

One is to learn how to hold empty positions.

There are many folk experts who are good at using funds for short-term operations to chase up and down prices, sometimes achieving high returns. However, for non professional stock investors, it is difficult to watch the market every day and track hot topics every day. So, in stock trading, not only should you buy stocks in an upward trend, but you also need to learn how to go short. When you feel that stocks in the market are difficult to operate and hot topics are difficult to grasp, the vast majority of stocks have experienced significant declines. Stocks on the rising list have little increase, while those on the falling list have a large decrease. This requires considering short positions, which is very suitable for non professional investors.

The second is that a sharp decline is a significant opportunity.

A sharp decline can be divided into a general market crash and individual stock crash. The chances of a bearish dip are much fewer than a bearish dip. A bearish dip is often caused by major negative factors or accidental events. A bearish dip that occurs at a relatively high point in the market should be treated with caution. However, for the main downtrend or a bearish dip that occurs after a long time, you should pay attention to stocks because many bullish stocks have the opportunity to fall.

The third is to control risks strategically.

The most effective strategy for controlling risk is to stop winning and stop loss. Once investors discover that the stock index has clearly broken through, technical indicators have reached the top, or their holding profits have significantly decreased, or even losses have occurred, they need to adopt necessary protective strategies. By stopping wins in a timely manner to maintain profitable results, and by stopping losses in a timely manner to prevent further expansion of losses.

The fourth is to control from the position.

Investors with heavier positions may have greater returns, but they also take on greater risks. Once there is a new change in the market, heavy traders will face serious losses if the market chooses to decline. Therefore, investors should decide their positions based on changes in the market, and when the trend is positive, they can place heavy positions; When the market is unstable, investors should appropriately reduce their positions and hold a small amount of stocks for flexible operations.