No investment is risk free. In stock market you cannot be right all the time. When you entered in to stock market, you are in a vulnerable position. You cannot predict the right direction of the market. You cannot choose the right stocks always. Risk is inevitable, you have to manage the risk tactfully. Risk taking capacity differs from person to person. The traders or investors must assess their risk appetite before entering in to a strategy. Every financial failure can be mitigated with proper risk management. The prime objective of risk management is to safeguard the traders & investors from impending losses. Effective risk management protects capital; while minimize losses and maximize profits inducing informed decision making.
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