What is risk tolerance? Why is it important? How do you determine your risk tolerance? In this article, we will explore all of these concepts in more detail. We will also explain the psychology of risk tolerance for investors and some ideas to increase or decrease risk tolerance. This can help fearful investors take the first step and help gamblers reduce their risk. By the end of this insightful read, you will have a good understanding of risk tolerance and how it impacts your investment decisions. So let’s get started! What is risk tolerance? Risk tolerance is the degree of variability in investment returns that an investor is willing to experience. It is often measured as the amount of loss an investor is willing to take before selling an investment. For example, an investor with a low-risk tolerance may only be willing to lose $100 on an investment before selling, while an investor with a...