Common Sources of Investment Risk

Market Risk
The overall stock market can experience significant fluctuations influenced by economic conditions, policies, and international events.

Industry Risk
Certain industries may weaken due to economic cycles, technological changes, or policy impacts.

Individual Stock Risk
A company's profitability, financial health, competitive position, and management changes can all influence stock prices.

Liquidity Risk
When wanting to sell, it may not be possible to execute immediately or only at less favorable prices.

Interest Rate and Exchange Rate Risks
Changes in interest rates affect stocks, bonds, and capital costs; overseas investments are also impacted by currency fluctuations.

Emotional and Discipline Risks
Chasing gains, selling in panic, fear of missing out, or changing plans suddenly are common risks investors tend to overlook.