Many investors associate risk with making losses. Risk is actually a two-sided concept. It can be less (upside risk) or worse (downside risk) than expected.
A financial product that has an upside risk will necessarily also have a downside risk. While investors should keep this in mind when they buy volatile assets such as stocks, there are some other risks they should cover before venturing into the market. An investor needs to have sufficient income to cover immediate living expenses ..