Many Canadians believe they need to take big risks to achieve reasonable rates of return. Although it is generally true that greater risks yield bigger rewards, many of us do not realize that we sometimes take unnecessary risks. In some cases, there is a real possibility of significant loss which might outweigh the potential of an above-average return.
If you believe that there should be more to investment planning than just blindly putting all of your money (as fast as possible) into the stock market, then it might be time to take a look at your investment strategy.
As investors, we have a tendency to like risk when markets are going up, but dislike risk when markets are on their way down. Understanding risk, your time horizon, and how these affect your investment strategy is key in ensuring that you are invested in a "risk appropriate" manner.