One of the biggest things we deal with everyday is risk. Earlier before, I've mentioned risk as "That nagging little thing". I will now proceed to explain further, the parameters of risk, and how can you deal with it especially in financial investments! 

Care to join me? 

Definition for risk? 

From Wikipedia: "The potential that a chosen activity may lead to an undesirable outcome (paraphrased)"

Related to investment, from Investopedia: "The chance that an investment's actual return will be different than expected."

So most people think of risk as CHANCE. "Something could go wrong" they say. Well first off, let me expand that view. 

#1: Two sides of the RISK coin.

You see when it comes to investment, there are actually 2 kinds of risk:

No. 1: An investment expected to make money,LOSES MONEY


No. 2: An investment expected to lose money, MAKES MONEY

Most people understand the first one. Not many people invest with the second principle in mind.