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Analyse your investing risk appetite
>You are willing to accept a high level of risk on your investment in order to seek higher growth potential, in the longer term, than is available on less speculative investments.

You are prepared to accept that this will increase the risk of large fluctuations in the value of your investment and of losing some or possibly all of your capital. Typically, you would consider investing in a narrow range of asset classes, primarily in equities, but there may also be exposure to currency risk by investing in overseas markets.

Very adventurous

You accept a very high level of risk on your investment in order to seek very high growth potential in the long term, with sharp day-to-day fluctuations in the value of your investments and the risk of losing some or all of your capital. Typically, you would consider investing in specialist equity markets or sectors expected to be particularly volatile, such as emerging markets.

This will give you a basic idea of what kind of risks you are willing to take with your investments. Stock market investing in not for the novices as you could end up with huge losses on your investments. A clear perspective about your own goals is necessary before you make any investment in the stock market.



 
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