Know Your Risk Tolerance
You probably know that investing involves risk. Different investment products and strategies involve different degrees of risk. Generally, the higher the expected returns of a product or strategy, the greater the risk that you could lose most or all of your investment.
So what level of risk is too much? This isn't a simple question, and there's no "right" answer.
It all depends on your risk tolerance--the amount of investment risk you're willing and able to accept--which is impacted by a variety of factors and is unique to you.
Source Fool.com
