If there’s a four-letter word in investing, it is R-I-S-K! Risks are what can turn investment hopes into nightmares!
All investments come with risk. In fact, there’s a direct relationship between the two: The greater the return an investment has the possibility of giving you, the greater the risk that something can go wrong. Your ability to understand and manage risk, to avoid being blindsided, to ensure that you minimize your losses, is what can make you a successful investor.
In this Risk Education Center, we identify the “Dirty Dozen” investing risks in order to give you a better perspective on what you’re up against! Keep in mind as well that anyone can create a plausible scenario using one or more of these risks whereby bad things happen and crush your investments. Your fear of something bad happening is probably greater than the likelihood of it actually happening. There’s even an expression for it. We say that as stocks rise, they “climb a wall of worry”.
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