Risk

Risk is the possibility of experiencing bad outcomes when making financial decisions.

Risk in finance is like the unpredictable waves in the ocean. For example, once you invest in the stock market, it's like sailing on this ocean. Sometimes the waters are calm and your journey is smooth (the market is doing well), but sometimes, big waves (market fluctuations) can rock your boat. The risk is that you might need to dock (sell your shares) during a storm (market downturn), which isn't ideal. Or in some cases, the waves may capsize your boat.

It’s about navigating the waves (risk) wisely, understanding that while some days are calm, others can be unexpectedly rough.