Risk and volatility seem to be always thrown around and used by financial planners or investment advisors, until almost everyone thinks risk is volatility, volatility is risk. Volatility in my interpretation are temporary deviation from the desired destination. In your wealth building terms it would look something like this: Life is not always a bed of roses, but you will eventually get there. Risk is the probability of a different outcome from the desired outcome. That sounds complex. it means that you are suppose to go to the library to study but somehow ends up being knock down by a bicycle by accident. You didn’t get to the library but somewhere else. In wealth building it looks like this: That does not look good.  This is why planners and advisors preach adequate diversification, so that if you have 5000 stocks and 20 of them becomes like this, you will ......