ThispaperfirstintroducestheconceptofriskinChina'sstockmarket,basicfeaturesandclassification;thentheriskfromthesystemandnon-systemriskanalysisofChina'sstockmarketisfacingamajorrisk;followingadetailedanalysisoftherisksfacedbyindividualinvestorsinvestinginstockswherethedisadvantage,thereareinformationasymmetryInvestorspsychologicalimmaturityandlackofbasicknowledgeofinvestinginstocksandtechnology;andthendescribeshowtoguardagainstinvestmentrisk,andthatisthegeneraltrendofprospectivecontractors,selectingstocks,steadyoperation,tomaintainagoodattitude;finalrecommendations,itisnecessarytoregulatethestockmarketandestablishingsoundsystemandstrengthensupervisiontoensuretheprotectionoftheinterestsofretailinvestors.