Investing contains risks that need to be managed wisely. This article explains key steps investors can take to avoid investment risks, such as diversifying assets, limiting leverage, etc. By understanding and mitigating risks, investors can grow wealth in a sustainable way.
diversify across various assets
Diversification helps reduce risks by allocating investments across various assets like stocks, bonds, real estate, etc. This way, poor performance in one asset can be offset by better performance in another.
limit the use of leverage
While leverage like margin trading can amplify gains, it also exacerbates losses. Investors should limit leverage to manage risks.
By taking prudent steps to mitigate risks, investors can achieve sustainable growth for their assets.