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Stock investment danger has apparent duality, its existence is goal, absolute, likewise subjective, relative; It can not be entirely prevented, as well can be controlled. Stock threat manage for traders just aims this twin danger, employs a wide range of investment techniques and strategies to minimize the cost of danger. The simple principles of danger control The objective of danger manage includes define the certain object of risk control (basic aspect risk, industry threat, business danger, marketplace threat, and so on) and the degree of threat control. How investors repair their goals rely upon their subjective investment motives, likewise depend upon the objective attributes of stock. Very first, the principle of danger avoidance. The so-called danger aversion means estimate the chance of threat ahead of time, analyze and decide the conditions and factors of threat arising. The certain practice of stock investment is: Give up moderately large danger stock investment, comparatively talking, the principle of danger avoidance is really a relative passive and conservative principle of threat control. 2nd, the principle of danger reduction. This indicates in the way of engaging in financial, do not renounce to the established goals because the existence of risk, nonetheless make use of a variety of measures and means to lessen the probability of danger event, lighten the potential fiscal losses. Third, the principle of threat retention. This indicates beneath situation of threat has occurred or already know the threat can not be prevented and transfer, envisage realities, through the long-term interests additionally, the overall interests, bear the risk, and continue to minimize the risk reduction. In stock investment, traders within the limits of their very own, figure out the degree of threat which they can acknowledge, under the situation of stock falling, decisively “flesh market at a loss”, “stop-loss”, self-adjustment. 4th, the principle of sharing (distributing) threat. In stock investment, traders via all sorts of types investment groups to include in stock investment with each other, reveal the investment danger. This can be a rather conservative danger control principle. Danger manage strategy After investors repairing the objectives of danger manage and threat manage principles, they really should according to set up concepts to lay down a distinct risk manage strategy so as to minimize behavioral blindness, make sure that danger manage goals are achieved. Risk manage strategies and investment options are quite often combined together. With the plan how to make much more revenue, there is a system the right way to bear less risk. Investment program is the requirement to put into action the concepts of danger manage and get danger manage objectives, meanwhile, it really is likewise constrained from the latter two. Even though the existing investment strategies have a lot of distinct types, generally, can be labeled into 3 classes: One is trend investment plan; yet another is method investing plan; the last one is go to duece or quit investment strategy.