The next time you’re tempted to trade in your favorite stocks, consider the potential crash.
It’s a big possibility and one that many analysts are already warning about.
“It’s a very big risk,” said Jeffrey Miron, chief investment strategist at UBS Wealth Management in London.
“You could be out of money and in trouble.”
In some cases, investors could even be out $100,000 in a matter of days, if a major stock market drop happens.
That’s because a market is volatile and could change quickly.
The biggest risk in trading stocks is that they can lose money in the short term.
The U.S. stock market is one of the safest and most liquid financial markets in the world.
The Dow Jones Industrial Average (DJIA) has gained over 5,000 points since its January 23, 2017 peak.
But it is expected to fall more than 20% in 2017, to a record low of 5,837.
The S&P 500 (SPX) and Nasdaq Composite Index (IXIC) will each fall by more than 7% in the next 12 months, according to data from FactSet.
Investors who trade in stocks that are expected to lose more than 10% in a year are at greater risk of losing money in a crash, as the volatility of stocks makes it easier to get into trouble, according, according To illustrate, here’s a look at the risk of a market collapse: If a stock fell more than 15% in five months, it would have lost at least $200,000.
Thats a massive loss for a short-term investor.
If a market drop is expected, a 10% drop could mean you lose $2,000 or more in a day.
You could also be out more than $1,000,000 a day if a stock goes down by more that 25% in just one day.
And that’s just for the short- and long-term.
If the stock price drops 10% or more, investors may have to sell their entire portfolio in order to survive.
A crash could also cause a major economic slowdown, according a report released by Goldman Sachs in February 2018.
The report found that the economy could stall or even go into a recession.
And if stocks fall 20% or less, investors can lose more money in one day than they do in a whole year.
The market has a history of making it hard to predict the future.
But as investors have become more aware of these risks, the U.K. and other major markets are starting to take them more seriously.
“This is a global phenomenon, and it is only going to get worse,” said Jason Gillett, chief economist at Goldman Sachs Global Markets in London, who predicted the market crash would happen by the end of the year.
“I think the worst is going to happen in 2017.”
One factor that has allowed the markets to stay relatively stable for so long is the U