How can I effectively manage risks when investing in the stock market?

[Jojo]

Risk management is crucial for preserving capital and achieving long-term success in the stock market. One key strategy is diversification, which involves spreading investments across different asset classes, industries, and geographic regions to reduce exposure to any single risk. Additionally, setting stop-loss orders can help limit potential losses by automatically selling a stock if it falls below a predetermined price. Regularly reviewing and rebalancing your portfolio can also help ensure it remains aligned with your investment objectives and risk tolerance. Finally, staying disciplined and avoiding emotional decision-making is essential for navigating market volatility.