There are risks in the stock market, so you should enter with precaution.In this market with profitsand risks coexisting, the investors should have the risk consciousness at any time and be prepared for the risks. So how to minimize the risk in a downward trend market?

Firstly, you need to learn shortpositions. There are many masters who like the short-term operation, sometimes it can make great profits, but it is very difficult to make profits for some people who neither have time to read the stock plate, nor are able to grasp the hot news.Therefore, in stock operation, you not only need to buy stocks in an upward trend, but also have to learn to be in shortpositions. In the sense that thestock market is very difficult to operate,hot newsis difficult to grasp, when the majority of stocks prices arefalling sharply, and minority of stocks have small rises, it’s time to consider operatingin short positions.

Secondly, slumpisalso opportunity. Slumpcan bedivided into the slumpof the market or slump of individual stock. The chance of slight declines is much smaller than slump ofthemarket. Slump is often caused by critical bad news or accidental events. We should be cautious about precipitous falls at the relatively high point of the market, but if slumphappens a long time after major falls or slight declines, it meansthatyou should pay attention to this type of stocks, because opportunity of great stocks is coming out of this kind of slump.

Finally, controlfrom the positions. Many people like fully invested operation, which they believe that they can maximizing the profitsin this way, but so do the risks. Once the market has new changes, and the marketis fallingdown, people who havefully invested will suffer serious losses. Therefore, investors should be flexible in positions according to the market condition, when the marketis going well, you can fully invest; when the market is unstable, investors should appropriately reduce shares (or in short positions), holding a small share of stocksfor flexible operation.