by Giana
When it comes to choosing an investment, there are some different factors that can contribute to whether the investment will be lucrative or not. Risk evaluation is the probability of you losing or gaining money on your investment. The main factor that will influence the risk of your investment and whether or not it will be rewarding is market conditions, including currency risk and political risk.
The risks you can take with your investments vary widely. The investments that have the lowest risk also give out the smallest gains, or none at all. The investments that have the highest risks have the potential to give out the biggest gains, but since they pose a higher risk, also have a potential for big loss.
There are some things to take into consideration when you are trying to decide the amount of risk that you want to take with your investment. First, you should not be using the money that you need to live for investments. Depending on how much you have to invest, you might want to spread out your money into different investments, so if you do lose money, you will still have some elsewhere. Also, you might want to invest your money in different asset classes that have different amounts of risk (e.g., bank stocks, gold, real estate, cash and antiques).
http://www.finra.org/investors/reality-investment-risk
When it comes to choosing an investment, there are some different factors that can contribute to whether the investment will be lucrative or not. Risk evaluation is the probability of you losing or gaining money on your investment. The main factor that will influence the risk of your investment and whether or not it will be rewarding is market conditions, including currency risk and political risk.
The risks you can take with your investments vary widely. The investments that have the lowest risk also give out the smallest gains, or none at all. The investments that have the highest risks have the potential to give out the biggest gains, but since they pose a higher risk, also have a potential for big loss.
There are some things to take into consideration when you are trying to decide the amount of risk that you want to take with your investment. First, you should not be using the money that you need to live for investments. Depending on how much you have to invest, you might want to spread out your money into different investments, so if you do lose money, you will still have some elsewhere. Also, you might want to invest your money in different asset classes that have different amounts of risk (e.g., bank stocks, gold, real estate, cash and antiques).
http://www.finra.org/investors/reality-investment-risk
https://www.google.ca/search?safe=strict&biw=1366&bih=662&tbm=isch&sa=1&ei=eHkYW5irKoKwjwS2ooOgAw&q=market+risk+triangle+for+investing&oq=market+risk+triangle+for+investing&gs_l=img.3...42471.51459.0.51619.21.21.0.0.0.0.227.1590.20j0j1.21.0....0...1c.1.64.img..0.2.301...0i8i7i30k1.0.O9WZufaTA5s#imgrc=8YGyC9ZScr3mZM:
