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In investment, balancing risk and potential returns is crucial. This guide explores how much risk to take, highlighting situations when one should avoid risk and when it is appropriate to take calculated risks. Additionally, it defines bear markets, where market downturns present unique investment challenges. Recognizing these factors will help investors make informed decisions and strategically navigate market fluctuations while maximizing their earnings potential.
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The Investment Superment 2.3 page 47-52
Risk – How much chance you take • Potential return – How much money earned • There are times to avoid risk • There are times to take a calculated (well-thought-out) risk • Bear market – down turn in the market