There are different types of investment risk.
Some of the greatest market price swings in recent memory happened in 2020. The volatility may scare off new investors, especially if they lost money during the spring sell-off. Thomas Martin, senior portfolio manager at Globalt Investments, says there’s more to investing risk than volatility. “The risk that (investors) ought to think about is not reaching the goal they have for investing their money in the first place,” Martin says, adding that the money used to invest should be earmarked for the long term. “It shouldn’t be the money you’re saving for necessities.” Here are seven risk-management tips for new investors.