Low risk investments will have lower return potential than high risk investments.
Low Risk = Potential Low Return
Medium Risk = Potential Medium Return
High Risk = Potential High Return
Your trading style will often define how low or high risk your strategy is but even the greatest investment/trading strategies are of little help if you do not control risk
How tough are you?
Your Risk Tolerance is the degree of uncertainty you can handle regarding a potential loss or decrease in your investment portfolio value
Risk tolerance will be different for each person and how much you can handle generally depends on three things;