Risk and Reward in investing

Risk and reward are two crucial elements in investing. Risk refers to the uncertainty of potential losses, stemming from market fluctuations and economic factors. Reward, on the other hand, represents the potential gains an investor can achieve. Balancing risk and reward is a key consideration; higher-risk investments typically offer greater potential rewards, while lower-risk investments provide more stability but with lower potential returns. Finding the right equilibrium between risk and reward is a fundamental decision for successful investing.