low risk investing for investing in stocksFor low risk investing and market info CLICK HERE The biggest contributor to minimizing your risk in the market, is just simply cutting the your losses while they are small. While cutting losses small 5%-6% is a superb idea for beginner investors it's not the only thing that you must do. You also must understand that some stocks are cheaper than they should be and if you can't predict their bottoms you should simply BUY MORE instead of cutting losses and selling. In a down market or bear market try to find stocks with a high stock beta that not for any economic reasons are too low. This happens many a times when the general market falls. One of the examples I can think of in the past that I have talked about other places was dollar tree stores inc. They were at a huge drop in price stock price. They were only 22 dollars a share from the BAD economic times. They have in the past been 35 all the way to 40 dollars a share. I sat there thinking about why on earth would a dollar store be 22 bucks a share in a bad economy? Bad economic times were there certainly but their stuff is only a dollar and in bad economic times I figured this would help them. Sure enough I was right, within 4 months they were back up to about 40 bucks a share almost doubling in price. You could have made like 40%on your money if you would have invested then, and made it all in a few months. Remember just becasue the stock is going up or down doesn't mean that it is for any economic reason. When to stop cutting losses investing in the stock marketThe time to not predict stock bottoms and tops happen when you have sort of a common sense reason why the stock shouldn't be where it is. As with my famous example that I didn't act on lol we can see there was no business reason for the stock being where it is. For finding stocks use zacks Zacks |