Risk is a normal part of investing. If you didn’t take on any risk, you wouldn’t have the potential to achieve higher returns. But how much risk should you accept?
You don’t want to incur unnecessary risk. So, you’ll need to assess the amount of risk you’re comfortable taking and then determine if this risk level supports your ability to achieve your long-term goals.
Here are some of the key factors in determining your own capacity for investment risk:
• Personality – We all have different personalities. And your individual personality can certainly affect your comfort lev...