What is the risk involved in stocks in comparison to other relative investments?


There is nothing certain about anything and there is a risk involved in every aspect. There is nothing that comes free of risk and similarly, investing your money is also risky, as one would not be certain about the returns.

As per Wikipedia, investment or investing in general has several meanings that are closely related in the fields of economics, finance and business. It is mainly related to saving or the deferment of consumption. An investment is made on an asset, just like how you make a deposit in the bank, with the hope that it will gain returns in the future.

Most of the people are skeptical about investment as it comes with a risk factor associated with it. This said, it is absolutely baseless to abstain yourself from investing due to the fear of risks involved.

Instead of staying away from investing, it is better to analyze and study the risks involved, so that you can manage them appropriately. Hence, a good investor would be having a clear idea about how to manage the risks associated in an investment rather than stopping themselves from investing.

Also, a potential investor needs to understand that the risks vary along with the type of investment. Forex trading is subject to a different risk level in comparison to stock trading. Similarly, a real estate investment would have different risks when compared to the risks that are involved in investing in a transport business. Immaterial of the kind of business, there is always a certain degree of risk involved.

Generally, the biggest fear that exists among investors is the risk of losing their money. Whenever an investor makes an investment, the next thought that comes to their mind is what it would be if they lose their money.

Apart from the general risk involved, there is another risk involved if you have an investment in some other currency market. Due to this, your investment would also be subject to the risk of currency values. Hence, there is nothing that can be free of risk and each investment, or rather each step you take in life, be it financial or non-financial, there is always a risk involved.

This said, it is best recommended to consult a financial adviser before you start investing so that you have a good idea about the risks you are subject to and the ways in which you can minimize or avoid risks.