Individual Stock Investment Risk Analysis And Preventive Measures

Past fourteen years shortly, from zero to some, China stock market hasdeveloped very fast, and it play an important role in China economic reformand development of China socialist market economy. However, because ofspecial economic background and short time, China stock market is a veryundeveloped and immature market. It has risk to invest in the stock market.Particular to personal investors, the risk is bigger to invest in the stock market.We should analyze the risks conscientiously, explore the effective measures toprevent the risks, it has a great realistic meaning to nurture the maturepersonal investors, to improve profit of the personal investors, to ensurehealthful growth of the stock market, to promote steady development ofnational economy.First, this article recommends the conception, the basic feature and theclassification of China stock market. Seconds it analyses the main risks ofChina stock market, it includes the avoidable risks and the unavoidable risks.Third, this article analyses the disadvantage of personal investment in Chinastock market, it includes the information is no symmetry, the psychology ofthe investors is immature and the investors are short of basic knowledge andoccupational skills. Fourth, this article recommends how can to keep a lookoutthe risks of investors must judge the trend of the stock market accurately, pickout the stocks accurately, keep good state of mind and operate the stockssteadily. Last, it put forward the suggestions that the governments shouldstrengthen the stock market, set up the perfect system, enhances the controland management; protect the interests of the personal investors practically.