But investing comes with its own set of challenges. When you put your money into the stock market, you could potentially lose some of your investment. Before you get started, you need to know how comfortable you are with the risks.
Risk tolerance is a measure of an investor’s ability to comfortably stomach losses, and it’s very different for everyone. This is why it’s important to not just copy another person’s investment portfolio — they may be more or less comfortable with riding out heavy losses compared to you.