What are some of the major risks people take when investing

[Knowlopedia]

Despite how you might feel about the stock market, investing your savings is a smart decision — and it can help you retire comfortably in the long run. However, there are some risks that you should know about before touching your savings. In this blog post, we'll go over the major risks of investing and what to do to protect yourself.

Some of the risks that people take when investing their hard-earned savings are:

1) Not diversifying their investments.
2) Investing in too many risky assets.
3) Expecting to make a quick profit which is mostly unlikely.
4) Chasing dreams of never ending rising markets and the biggest single trade that will solve your problems is not both possible and wise to try for most average investors .
5) Just investing in general and hoping things will go your way .
6) Never bothering to read financial literature and learn the basics of investing .
7) Using your broker's research as the gospel truth of why you should use their services .
8) Putting all your eggs in one basket that is easy to touch when the basket breaks, or becomes too big or too small.
9) Not diversifying across multiple asset classes .

 

[Kunde]

One of the biggest risk that people make when investing there many is been greedy. This has made many people to loss lots of money. Some might have a very strong strategy but will still loss there money all because they are greedy. This has happened to me before while I was trading forex. I was making profits with my startegy and it was going smoothly. It got to a point that I had to increase the pips and normally for the strategy, I am supposed to go for 20 pips but because in my recent trades using the same strategy, the pips have been going beyond 80 pips, so I increased the pips to 50 pips. But this 2ent against me and I lost up to 30% of my money on that trade.