"First weigh the considerations, then take the risks." Helmuth von Moltke.
There are risk everywhere. It is always present even when we don't realise it. It's there if you are driving along the highway. You can't avoid it if you are surfing in the ocean. By walking into a bank or a convenience store you risk being robbed by someone who wants your money. It is omnipresent in the stock market also. Your portfolio is at risk everyday by unseen and mostly unknown forces trying to find a way to separate you from your accumulated profits.
Risk itself is a powerful force that has always lurked like a thief in the night, ready and waiting to steal hard-won portfolio gains. It is an inherent, unavoidable danger for investors and traders. Just as one puts on a seat belt when driving a car or a dons a helmet when riding a motorcycle, risk must be acknowledged and dealt with by a stock market investor also.
Risk is really an evil-doer that doesn't work for you but against you. Risk creates an environment in which there is always the potential for something to go wrong. Risk uncannily gives rise to the possibility for disaster. And it has a tendency to do so unexpectedly-from out of the blue.
What exactly is the meaning of the word "risk"? The definition of "risk" is "the chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment."
Risk in the shares market comes camouflaged in many forms. In other words, the total risk inherent as a result of investing in an asset is a combination of many possible sources of risk. Each type of risk can lead to a loss potentially. Managing stock market risk starts with identifying the various types of risks and then taking action to mitigate the impact of risk on your investment portfolio.
The fact that you're here, reading this article, is a good indicator that YOU probably have a desire to constantly increase your wisdom, question old beliefs, and expand your knowledge base while taking risk.
All these characteristic will certainly give you a leg up in the ultra-competitive investing profession.
