Wall Street Steward Blog


What Is Your Risk Tolerance? My 1 to 5 Scale

Today, we’re going to talk about the most important aspect of investing, if you ask me.  What is your risk tolerance?  What is your number?  I use a 1 to 5 scale.  I’ll be the first to say my way is not perfect.  It’s not the only way.  I’m trying not to pick my nose here.  It’s not perfect, alright?  But, it’s worked for me for the last ten to twelve-fifteen years.  And, it’s very simple.  It’s very easy to articulate.  I have seen it as a good judge of actually judging what someone’s true risk is.