Investment Mistakes - Taking Too Much Risk

Investment risk is not a hard concept. In order to invest and make money, you will need to take risks. However, some investors go overboard and put too much of their portfolio in small caps high risk companies. Sure if they all do good, then you will make money, but a good majority of the small caps companies end up going under within a few years.

Remember, no one is immune from losing money. Look at everyone who lost money during the stock market drop in the early 21st century. Don't think you will be able to sell when you see the market heading for a downward spiral. By the time you figure it out, you will have probably lost at least 50% of your assets.