10 Commandments Of Long Term Investing (1 of 10) 10 Commandments Of Long Term Investing (3 of 10)

10 Commandments Of Long Term Investing (2 of 10)

by
Commandment II: Risk Is Only Relevant In Relation To Its Rewards -Understanding risk is about understanding uncertainty and volatility is a good judge of that. But it is important not to craft this assessment in a way that benefits you, like tracking error assessments that point to limited losses when your losses have actually been much greater. Instead, understanding the risk reward balance, via how much you are willing to lose of what you have for potential gains, is a more reasonable path to achieving long term goals.