Some basic fact about risk and loss in investment

[Yan1]

In our everyday lifes, we have been hearing about investment neither from a friend or our relatives. it might also be from social media.its good to invest your money to make extra gain infact investment is the most popular profession today.

when your are planing to invest in any investment platform, you have to bear two things in mind: Risk and return. these two factor are somehow familiar. Let's start with Risk.

Risk is that possibility of someone (possibly an investor) losing some or all the money in an investment. while, Return is said to be the gain or profit where an investor make in an investment.

Risk determine the volatility of an investment returns in which the return is influence by varieties of factor such as market conditions, the performance of the company or assets being invested in. while Return can actually be express in term of percentage or Dollar amount.

An investment with high volatility is considered riskier than an investment with low volatility because it is more likely to experience large swings in value.Different types of investments carry different levels of risk.

Diversification is important: Investing in a variety of assets can help spread out risk, so if one investment performs poorly, it won't necessarily have a significant impact on your overall portfolio. This can help to spread the risk and reduce the impact of any one investment on the portfolio's overall performance.

It's important to consider your risk tolerance when making investment decisions. If you're not comfortable with the possibility of losing money, you may want to focus on lower-risk investments.

It's important to note that historical performance isn't a guarantee: Just because an investment has performed well in the past does not guarantee that it will perform well in the future. It's important to do your own research and carefully evaluate an investment's potential risks and returns

 

[Shaf]

Everyone who's investing should be willing to potentially lose 100% of that money. Every business comes with it's own risk, and the higher the possible returns the business can generate, the higher the risk.

Sadly, most investment guides either do t explain this well enough, or the investors simply don't care to understand what it entails. Such people will place the blame later on others for their losses.

 

[Augusta]

Yes, any investment comes with high-risk we just have to know this. High volatility investment tends to be riskier than an investment with low volatility. This is why it is always good to give a good thought to an investment that will take a lot from us and the risk will be high too.

I agree with you that diversification is important with : Investing in a variety of assets can help spread out risk, it help to spread the risk and reduce the impact.