In the world of stock trading, understanding and managing risks is essential to safeguarding your investments and achieving long-term success. Systematic risk, though unavoidable, can be mitigated through strategic asset allocation and hedging. Unsystematic risk, on the other hand, can be effectively reduced through diversification and informed decision-making.In the world of stock trading, understanding and managing risks is essential to safeguarding your investments and achieving long-term success. Systematic risk, though unavoidable, can be mitigated through strategic asset allocation and hedging. Unsystematic risk, on the other hand, can be effectively reduced through diversification and informed decision-making.