Risk is the Downside
When purchasing common stocks, the name of the game is risk avoidance. If you avoid losing money, you stand to do well in the stock market. You buy a stock to achieve a return, but achieving a return depends on buying quality stocks when they are trading at bargain prices. That is, you make a good stock investment when you buy stock in a solid company that is underpriced. When you do this, you have minimized risk by minimizing your potential loss. If you want to achieve good returns consistently, don’t focus your attention on the possible return; focus on minimizing your risk of loss when you buy.
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