To the investors out there, I want to know how you manage to face the risks you encounter?

Answer 1

Well, a lot of it just has to do with simple fortitude. You have to have some guts and belief in what you've done. During those times when you see a substantial slip in the value of your investments, you just have to knuckle down and bear it with the knowledge that you did your research beforehand, and, therefore, your investments will recover and, in fact, gain. That is if you're in those things for the long run.

If you're doing day trading or things like that, you have to evaluate your postion and determine if you'd be better off cashing out, taking a different position, and re-entering the arena when the overall market shows improvement.

So, a lot of it depends on what kind of investor you (personally) are, and what your goals happen to be.

Answer 2

Follow Warren Buffett by being informed and having a fall back situation on all stocks invested. A fall back means when things go wrong and affect your investment, you could then say to yourself that there will be a better day for your investments and hang on to them with temporary paper losses.

Though I have failed in many occassions but so far I have improved significantly. With current downturn, the portfolios still do not look too bad with one tenth of past paper profits eliminated.

Answer 3

Be an informed invstor.. If you take the time to research your investment, you will be less inclined to overreact if the market takes a sudden swing either way.