Too Long; Didn't Read
You have to find the right investment strategy for you by dealing with your personal risk profile. Your risk profile will show which investments you correspond to and influences your investment strategy. Four main factors have an impact on your risk profile: Risk tolerance (how well you as an investor can cope emotionally with losses on your investments) Risk capacity (the risk you can take according to your financial situation) Knowledge of finance (Level of financial knowledge and experience with securities) is key to assessing the risks. Knowing which one you are a risk-averse investor could help you put your investments in a way that fits your preferences and goals.