Ripples Advisory, The distance between risk & loss is your ability to deal with volatility

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Risk, in traditional terms, is viewed as a ‘negative’. Webster’s dictionary, for instance, defines risk as “exposing to danger or hazard”. The Chinese symbols for risk reproduced below, give a more appropriate description of the word. The first symbol depicts “danger”, while the second represents “opportunity”, making risk a mix of the two. 

Most people confuse risk with volatility. While contemplating risk, the main concern an investor has and demands compensation for is not volatility, but the possibility of permanent loss.

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