BECOME A MORE PROFITABLE TRADER WITH THE RIGHT EDUCATION

Get on our mailing list so you know when we release free training, live classes, new courses, and even discounts and promotions.

Two Stock Market Risks: Systemic / Unsystemic Risk (Systematic / Unsystematic)

Hey it’s Sasha Evdakov and thanks for joining me on this week’s lesson. Now, this week what I’d like to cover is the two main risks in the market and they are Systemic risk and Unsystemic risk. Now sometimes some people call them Systematic risk or Unsystematic risk but for me I use the term Systemic and Unsystemic risk.

Understanding Systemic and Unsystemic

These are the two main risks in the market and you can of course use these two main risks and apply them to regular investments as well so you can take these risks, Systemic and Unsystemic and also apply them to your just general day-to-day life in terms of risk.

When we look at the foundational concepts of these two different types of risks, the whole point of knowing and understanding what they are isn’t really just to see how you’re positioned in the stock market and what risks and exposures that you have.

Systemic risk and basically the easy way to remember, is something that affects the system as a whole. If you think about the stock market if you have systemic risk like war breaks out this affects the whole system of the stock market or it affects everything encompassing your investment so that is Systemic risk.

Now, Unsystemic risk or Unsystematic risk, if you prefer that way of phrasing it, is really things that affect individual stocks or stocks specific. It could also be sector specific risk in terms of just maybe the tech industry or maybe just the retail industry or something like that. It’s really just encompassing just a very small portion of the market.

To simplify things if you are diversified let’s say in your portfolio, you have a basket of five stocks and then one of those has earnings coming out that is Unsystemic risk because the other four that you have are going to somewhat protect you because they don’t have earnings, they don’t have this Unsystemic risk coming out.

On the flip side if you have something like the Wall Street Crash of 1929 then that is Systemic Risk. It’s going to affect just about every stock out there and diversification is not going to help. The same thing with the Black Monday in 1987, again that’s going to a fact a huge part of the market and even if you had a hundred different companies you are still going to be at risk because it pulled down the whole market.

Dealing with Risks

Now you might be wondering what is it that you can actually do when it comes to Unsystemic risk. Well, if it’s Unsystemic risk, like FDA approvals earnings you probably guessed it, you can get out beforehand or have a basket of stocks to diversify or if you’re looking at a global scheme of your investments you can have other investments like a real estate coins stamps whatever it is that you’re investing into. You can diversify your investments that way if you have one thing going wrong or bad, other things are going to keep you diversified and balanced out within your investments.

On the other hand if you have something like 9/11 happening where two airplanes crashed into the Twin Towers then that is something that is very tough to plan for. Of course you can get some of the safer plays and stability plays that maybe we’ll kind of help cushion the movement in case everything gets suck down or maybe get some inverse place but those are very difficult things to time unless you start seeing slowly war breaking out but usually a lot of those things that come are unexpected.

What you could do is buy some options if you see something’s coming in but it’s very tough to plan for those other types of systemic risk, instead it’s better to diversify in other areas of your life such as real estate or buying actually physical tangible assets to where the value may not get sucked down or pull down as much as you know, if everything affects the stock market.

Join other stock who get a trading edge each week with our newsletter

Get our free stock market tip, video reviews, and exclusive announcements.

No spam, no gimmicks, no junk - Unsubscribe anytime

I'M SASHA.

Thanks for joining me on my trading website where I share with you about trading stocks and options.

DOWNLOAD 100 Stock trading tips Book

Ready to check out some of our best-selling books that can help you become a better and more profitable trader? Check them out by clicking the link below… 

Video recaps on the recent market trends

Summary of recent market activity looking at swing chart opportunities, potential setups, and technicals.

Stock market picture charts annotated

Quickly review screen captured stock charts with annotations. Includes support, resistance, ABCD patterns, and possible breakouts.

want some helpful advice?

Pay-Per-Minute Coaching

I am scheduling helpful coaching sessions for people who are interested in real-world advice & guidance where you only pay per session. No long term commitment required.

This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

15 Hot Stocks Warren Buffet Loves

Trade and earn like Warren Buffet! Here are the stocks he invests in!

 

Get the list now and start earning your money!

Ready to Learn Profitable Strategies to Trading Stocks?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing... 

Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing... 

Portfolio Allocation - Percentage of Each Stock

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

Quickly Calculate Mid-Day Volume

This Excel sheet will allow you to quickly find out if your stock's volume is trading above or below the daily average during the middle of the day.

Top 15 Dividend Stocks for Retirement in 2020

Download our list of the best stocks for retirement. Simply enter your email address below to get the PDF!

Buying or Building a Trading Computer for 2020

Learn how to buy the right computer for your trading needs or choose the perfect parts if you are custom building a trading computer!

 

 

VIDEO COURSE

Top 25 Tech Gear for Traders

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

Awesome Phone Apps for Traders

Discover these awesome phone apps most traders use on trading! Earn money anytime, anywhere with these apps!

Top 7 Dividend Paying ETF's for 2020

Want to know the top 7 ETFs that pays the biggest dividends in 2020? Download this list now and start earning your dollars!

Do you want to download a list of over 125+ popular stocks that you should keep your eye on?

 

Enter your email below and we will email you the list of 125+ hot stocks!

OPTION TRADING GEEKS

Download my easy worksheet so that you can quickly see and know what the greeks will do to your position! 

 

Enter your email address below to download it!

OPTION STRATEGIES

Enter your email address below and get access to our video strategy session on 25+ option strategies and how to set them up!

25

How Long Will it Take to Reach $1,000,000 in The Stock Market?

Want to see for yourself how long it will take you to reach $1,000,000 based on your personal return?

 

Then download my Excel cheatsheet for FREE to see and play with the numbers!

OPTIONS GREEKS

Ready to get a deep understanding of the option Greeks?

 

Get access to my video training by entering your email address below!

VIDEO TRAINING SESSION

Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing...