How to Outsmart Risk?

If you want a stable type of stock even though the economic conditions are currently moving, this Counter-Cyclical Stock can be an option. This stock will not be affected by macroeconomic conditions or business situations in general. So it can be interpreted that during a recession or economic downturn, the stock price will remain high. This is because the issuer or share issuing company can pay high dividends. This is the result of the issuer’s ability to earn high income even during a recession. You can get detailed information on our official website at http://www.forexkenya.net/.

The next thing you need to know is the form of stock return and risk. This point is important so that you understand what you will get and might sacrifice when investing in stocks, and how to optimize it. For that, you also have to remember that big profits will only be obtained with great risks. The stock game is full of intrigue. There are many unforeseen conditions so that often people who already have high flying hours of investing in stocks even record investment returns that are not too much (many of whom are not spared losses).

However, if the issuer turns out to have no remaining assets (after paying off debts, taxes, and employees), then you must let your shares forfeit without getting any returns. If we refer to the theory, there are 2 types of risk in stocks; that is, systematic and unsystematic risks. Systematic risk comes from external market macro influences, for example, changes in foreign exchange rates, interest rates, and government policies. Meanwhile, unsystematic risk comes from within the industry (capital structure, asset structure, and liquidity). You can still reduce this risk by diversifying your stock posts. Now you know the types of stocks and their potential benefits and risks. However, there is still important information that you should know before finally investing in stocks. This one piece of information can even be said to be the most important because it relates to how you can successfully invest in stocks.