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Risk vs Reward

Bigger possible wins usually mean bigger possible losses.

  • Define risk and volatility
  • Match risk levels to feelings
  • Decide what risk feels right for you

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▶ Video lesson · Watch first
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Roller coasters

A super-wiggly stock is like a roller coaster — thrilling, but you might lose your snacks. A calm stock is like a kiddie train — slower, but steady.

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Volatility

VOLATILITY measures how much a price jumps around. High volatility = big highs AND big lows. Low volatility = small moves.

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Know yourself

There's no right answer. Some people love the coaster. Some prefer the train. Smart investors mix both!

📝 Quiz Time

Complete = +250 VC · Score 80%+ = +500 VC bonus

1. High volatility means…

2. Higher possible reward usually means…

3. A calm stock is like a…

4. Smart investors usually…

5. Can you avoid all risk in investing?

0 of 5 answered5 left
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