
Risky Business: Investing- What Does the Term "Risk" Really Mean?
When it comes to investing, what is “RISK”? RISK can be defined by the opportunity to gain significant money at the RISK of losing significant money. For most people RISK is defined by feelings. “I lost a lot of money in 2008 so I don’t like RISK!” or “My parents lost everything during the last recession when I was a kid, so I hoard my money!” Those things are relevant but can get you in trouble if that is all you are basing your decision on.