Each type of investment instrument has different risks, some are low, medium and high risk, so every investor needs to observe and manage investment risk in order to minimize the risk of loss. In terms of type, there are two investment risks, systemic risk and unsystemic risk.
Systemic Risk occurs due to external influences or market segments, such as inflation, interest rates, fluctuations in the value of money, politics, etc.
Unsystemic Risk occurs due to internal influences so that it can be controlled such as liquidity risk and reinvestment.
Investment is not gambling, so investment needs to be managed properly and correctly according to financial conditions and risk profiles. Mistakes in choosing investment instruments will also have an impact on losses such as if you have a conservative risk profile choosing high-risk instruments such as stocks and crypto. So investors need to determine risk tolerance in percentage.
Systemic Risk occurs due to external influences or market segments, such as inflation, interest rates, fluctuations in the value of money, politics, etc.
Unsystemic Risk occurs due to internal influences so that it can be controlled such as liquidity risk and reinvestment.
Investment is not gambling, so investment needs to be managed properly and correctly according to financial conditions and risk profiles. Mistakes in choosing investment instruments will also have an impact on losses such as if you have a conservative risk profile choosing high-risk instruments such as stocks and crypto. So investors need to determine risk tolerance in percentage.
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