1) Risk and Diversification
While the stock market may be lucrative, the market can be volatile, with the ups and downs of the proverbial roller coaster. Every individual investor has a different threshold for the level of risk they are willing to take on in their investments. In fact, your personality and lifestyle may dictate how much risk you will be able to stomach comfortably.
Each investment instrument has varying degrees of risk associated with it. As an investor, you must consider the risks involved, and have the knowledge to protect yourself from these risks.
In this tutorial, you will be introduced to risk and its relationship to making profit from your investment.