Equities Risk
Risk and Reward:
Face it, you will not be able to realize high gains without putting yourself at a higher risk. It is all about your personal preferences and whether or not you can afford to lose any money and/or sleep!
There are lower risk investment styles such as income/dividend and defensive investments in which your equities risk is much lower. Then there are higher risk, but higher reward styles of investment such as growth/momentum investing and trading stock options. It is all about
your personal taste and whether or not you have the stomach for some of the volatility that can take a toll on your emotions. However, as with all investments, equities risk is inevitable. If you have money in the market then your money is always at risk. There are definitely different
levels of risk, but the point is - you are ALWAYS at risk. The more you know, the safer you are; knowledge is power. If you found this page because you were searching about the risk involved with investing then that obviously shows that you are concerned, and if you are concerned then I highly suggest
that you read as many investment books as possible. This will give you a huge head start and can actually lower equities risk because you will be less prone to make bad investment decisions. The most important thing to remember is that knowledge is power - learn all you can before investing.
Click on "All Resources" at the top of this page for a selection of stock market investment books written by some of the greatest traders of all time.
Something to Remember
Always Remember:
Use your best judgement at all times. There are hundreds (if not thousands) of websites that will try to lure you into some get rich quick schemes that are bound to hurt your portfolio. Don't even think about penny stocks. Those stocks are cheap for a reason. Of course there is always that "possibility" for a miracle to happen, but you know what - there is always that same "possibilty" when you gamble in Las Vegas.
We are investing, not gambling. Taking an unlikely shot at get-rich-quick schemes are a sure way to lose money. I am sure some people have actually made money in penny stocks, but some people also actually make money in Vegas. Just remember, if it sounds too good to be true then it probably is. If it was really that easy to get rich quick, then everybody would be rich. The goal in the stock market is to do everything you
possibly can to increase your odds at making money, and taking those huge gambles are not ways of increasing your odds - they lower them. Equities risk always correlates with reward.
The choice is yours - invest safely!