It’s easy to simply write off these findings and attribute them to the fact that risk tolerance tends to decrease with age: Younger investors, further from retirement, can have more fun in the market versus older investors who are inching closer to their nonworking years and may want to be more conservative.
But younger investors who are less experienced should be wary. While you might enjoy the sudden rush of excitement when a stock price rises, one day you will have to face the stress of seeing the stock price fall.